TIB index based from the NZ Tax Information Bulletin - kwister.net
Current Time (NZ)
03:16:08
29 Dec 2024
03:16:08
29 Dec 2024
TIB index based from the NZ Tax Information Bulletin - kwister.net
Taxation (Research and Development Tax Credits) Act 2019 - RESEARCH AND DEVELOPMENT TAX CREDIT
New tax rules have been introduced which provide a tax credit to businesses that perform research and development (R&D) in New Zealand from the 2019-2020 income year. The definition of R&D is in line with comparable jurisdictions and requires a person to seek to resolve scientific or technological uncertainty.Taxation (Research and Development Tax Credits) Act 2019 - ELIGIBLE PERSONS
The key eligibility criteria are that a person carries out business in New Zealand and performs a core R&D activity in New Zealand. In comparison to other jurisdictions, the New Zealand regime involves less of a focus on where the intellectual property from the R&D is held. Instead, the key focus is on where the R&D is being performed so that the benefits of the R&D spill over to the New Zealand economy - for example through an increased number of high-skill jobs for New Zealanders.Taxation (Research and Development Tax Credits) Act 2019 - DEFINING R&D ACTIVITY
Research and development, as the term is used colloquially, does not have a precise definition. To target the tax credit, the amendments therefore introduce definitions of core research and development activity and supporting research and development activityTaxation (Research and Development Tax Credits) Act 2019 - ELIGIBLE EXPENDITURE
Expenditure is eligible to the extent it has been incurred on an R&D activity. The expenditure must be listed in schedule 21B part A (eligible expenditure), and not listed in schedule 21B part B (ineligible expenditure). Specific rules apply for R&D conducted in a commercial production environment, contracted R&D and foreign R&D.Taxation (Research and Development Tax Credits) Act 2019 - INELIGIBLE EXPENDITURE
Certain expenditure is not eligible for the R&D tax credit, such as interest or the upfront cost of acquiring depreciable property. Expenditure is excluded for a variety of reasons.Taxation (Research and Development Tax Credits) Act 2019 - TAX CREDIT CALCULATION AND CAP
Categories: calculation, research-and-development, tax-credits, year-2020Taxation (Research and Development Tax Credits) Act 2019 - RECEIVING YOUR R&D TAX CREDIT
This section explains how a person can receive their tax credit and how existing tax rules, such as imputation and carry forward rules, apply when a person receives the R&D tax credit.Taxation (Research and Development Tax Credits) Act 2019 - INTEGRITY MEASURES
The R&D tax credit rules include various integrity measures to ensure the R&D tax credit regime is sustainable over timeTaxation (Research and Development Tax Credits) Act 2019 - BECOMING AN APPROVED RESEARCH PROVIDER
A person needs to incur at least $50,000 of eligible R&D expenditure in an income year in order to claim the R&D tax credit. Amounts under $50,000, however, may be eligible where the person uses an approved research provider to perform the R&D on their behalf.Taxation (Research and Development Tax Credits) Act 2019 - IN-YEAR APPROVAL
Most claimants intending to apply for R&D tax credits must obtain general approval of their R&D activities before filing their income tax returns. Significant R&D performers (businesses with eligible expenditure exceeding $2 million in the income year) can either obtain general approval or can opt into a separate process of getting their R&D expenditure certified by R&D certifier.Taxation (Research and Development Tax Credits) Act 2019 - SOFTWARE DEVELOPMENT
Software development for the purposes of internal administration is excluded from the R&D tax credit, whereas internal software development with an external focus is subject to a $25 million cap, and software developed for sale is subject to the same $120 million cap that applies to all R&D expenditure.Taxation (Research and Development Tax Credits) Act 2019 - ADMINISTRATIVE REQUIREMENTS
It is important for the fiscal sustainability of the scheme that the R&D tax credit is only provided for legitimate R&D. Therefore, to ensure a person substantiates their claim for the credit.BR Pub 19/04: Income tax - application of the employee share scheme rules to employer issued crypto-assets provided to an employee
The Arrangement is the provision of crypto-assets by an employer (or another company in the same group) to an employee in connection with their employment in circumstances.QB 19/12: What is the fringe benefit tax, GST and income tax treatment of an employee contribution to a fringe benefit?
This item will be of interest to employers who provide fringe benefits to their employees, where the employees contribute to the value of the benefit. Employees may make a full or partial contribution to the value of the fringe benefit. Employee contributions may affect the GST, fringe benefit tax (FBT) and income tax returns of employers.QB 19/13: Income tax – when does the business premises exclusion to the bright-line test apply?
This Question We've Been Asked (QWBA) explains the business premises exclusion that applies for the purposes of the bright-line test. It will be of interest to anyone selling their business premises on what might be residential land.QB 19/14: Income tax - when does the business premises exclusion in s CB 19 apply to preclude land sales from being taxed under ss CB 6 to CB 11?
This Question We've Been Asked (QWBA) explains when the business premises exclusion in s CB 19 of the Income Tax Act 2007 applies to sales of land that would otherwise be subject to tax under any of the land taxing provisions in ss CB 6 to CB 11. It will be of interest to those selling their business premises, if the sale is potentially taxable under one of those provisions. Primarily this will be taxpayers who bought the premises with the purpose or intention of resale, or taxpayers who are dealers, developers or builders, or associated with someone in one of those businesses.OS 19/04a: Commissioner's statement on using a kilometre rate for business running of a motor vehicle - deductions
Operational statements set out the Commissioner's view of the law in respect of the matter discussed and deal with practical issues arising out of the administration on the Inland Revenue Acts. This Statement explains how the Commissioner's kilometre rates are to be applied. Future rates will be set each year as the necessary third-party data becomes available. This Statement updates and replaces Operation Statement OS 18/01 Commissioner's statement on use of a kilometre rate for expenditure incurred for business use of a motor vehicle, issued in July 2018.OS 19/04b: Commissioner's statement on using a kilometre rate for employee reimbursement of a motor vehicle
Operational statements set out the Commissioner's view of the law in respect of the matter discussed and deal with practical issues arising out of the administration on the Inland Revenue Acts. This Statement explains the acceptable method to establish the tax-exempt portion of an amount paid to an employee as reimbursement of expenditure incurred by that employee where the employee uses their private motor vehicle in the employer's business.General Determination DEP104: Tax Depreciation Rate for lay-flat hoses
The Commissioner has been asked to consider a depreciation rate for lay-flat hoses used for hire equipment business purposes. Lay-flat hoses are generally viewed by the Commissioner as a component of a pump set and not a separate depreciable item. However, in the context of a hire equipment business, due to the variety of lengths that may be required, lay-flat hoses are often hired out as a piece of equipment separate to other equipment, so in these circumstances are viewed as separate depreciable property. The general determination will be available only to hire equipment businesses.Taxation Review Authority considers whether the repayment of a loan can generate an input tax deduction
The disputant challenged his self-assessment of GST for the two-month taxable period ending 30 September 2007 ('disputed period'). He sought to claim additional input tax deductions for taxable supplies acquired during the development of two properties ('10 and 19'). This expenditure included a payment he made to a finance company ('XYL').Court of Appeal confirms deductions for bad debts not available as operating a 'Benevolence on the Conscience Loan Fund' not a money lending business
This was a second appeal from a decision of the Taxation Review Authority ('the TRA') which had been upheld by the High Court on a first appeal. The Commissioner of Inland Revenue ('the Commissioner') had issued assessments disallowing two deductions for bad debts in the amount of $50,000 and $122,280 respectively and imposing shortfall penalties under s 141A of the Tax Administration Act 1994 ('the TAA') for not taking reasonable care.Unsuccessful strike-out application to Commissioner of Inland Revenue's Property Law Act 2007 claim
The High Court dismissed the defendants', the late Mr Kris McPherson Robertson ('Mr Robertson') (Mr Wayne Andrew Wallace and Mr Clifford William Mancer acting as executors of Mr Robertson's estate), Bianca Cafe Limited (previously Coffee Distribution NZ Limited), and Kaffee Espresso NZ Limited (collectively 'the Defendants'), application to strike out the Commissioner of Inland Revenue's ('the Commissioner') claim.Taxation Review Authority considers 'taxable activity' and entitlement to input tax deductions
The disputant challenged GST assessments for the periods ending 31 January 2017, 31 March 2017, 31 May 2017 and 31 July 2017 ('the disputed periods') that had disallowed input tax deductions claimed by the disputant during these periods. Additionally, the Taxation Review Authority ('the TRA') considered whether or not the disputant was engaged in a taxable activity.