COVID-19: Business Tax Relief
Business Tax relief may be available to businesses affected by the downturn in business due to COVID-19. Depending on your circumstances, there are a range of things that may help. If you have a tax agent, they should also be able to help.
Business cash flow and tax measures help:
• increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021
• increasing the small asset depreciation threshold from $500 to $1,000 — and to $5,000 for the 2020/21 tax year
• allowing depreciation on commercial and industrial buildings from 2020/2021
Difficulty paying your tax:
If you’re having difficulty paying outstanding tax, an instalment arrangement can be set up.
You can also apply for a write-off due to serious hardship when you know you won’t be able to pay the full amount.
Late filing and late payment:
Extensions to filing dates for some income tax returns may be available. Extensions can’t be granted for GST and PAYE returns, but any penalties for late filing may be remitted. Under limited circumstances penalties for late payments incurred due to the effects of the COVID-19 may also be remitted.
Provisional tax estimates:
You may be able to make an estimate or re-estimate of provisional tax, if your circumstances have changed due to the COVID-19. Early refunds maybe arranged if provisional tax has been overpaid.
Write-off use of money interest:
To support businesses and individuals impacted by COVID-19, the Government is proposing to give Inland Revenue the discretion to write-off use of money interest (UOMI) on payments due on or after 14 February 2020 if a taxpayer’s ability to make a tax payment on time has been significantly adversely affected by the COVID-19 outbreak.
Under the current proposal, UOMI could be remitted for a maximum of two years past the date of enactment, but the actual length will depend on the circumstances of each business or individual.
For more information and to apply see HERE