Industry Advice on Finance, Business & Tax for the New Zealand Market

Property taxation is currently a hot area of focus for the Tax Department. If you’re buying, selling or renting property in New Zealand, it’s important to understand how property taxation works and your responsibilities as a business owner.

If you are moving to New Zealand, or are returning to New Zealand from overseas, then you could qualify for the transitional tax resident exemption. We explain what this means and how it impacts your tax obligations.

As the tax landscape continues to change with increased complexity of tax regulation both domestically and overseas, the management of tax is fast becoming a necessary part of today’s advisory board agendas. Graham Lawrence gives some important advice to business owners who want to get it right.

Many businesses overlook the importance of Fringe Benefit Tax (FBT), risking profitability due to compliance errors. Proper FBT treatment is a strategic responsibility for business leaders, especially as recent Tax Department reviews signal stricter enforcement.

The 2016 Taxation Act introduces a provision allowing companies involved in intensive R&D to cash out tax losses tied to research expenditures. This aligns with the government’s Business Growth Agenda, aimed at promoting innovation as a key driver for economic progress.

At a time when the tax landscape continues to change, it appears an old established rule dating back to the 90’s has become one of the focuses of the New Zealand Tax Department’s current compliance programme.

New property tax compliance regulations have been introduced for residential property purchasers, potentially leading to scrutiny from the Tax Department for some taxpayers. As we assess these changes, it's crucial to understand their implications and the anticipated effects moving forward.

Making savings with your FBT can save you a few thousand a year – and being smart around how you make available company vehicles to employees is one option. Graham Lawrence reports.

An effective way to attract, retain and incentivise your key people is by creating an employee share scheme. We introduce three popular employee share scheme options that every business should consider.

Armed with a favourable tax case the IRD embarked on a mission to tax overseas individuals who still had property investments in New Zealand. According to the IRD they were still New Zealand tax residents…so exactly what is a New Zealand tax resident in their eyes?

Many businesses will soon be starting to assess all the non-cash benefits provided to employees to determine whether or not Fringe Benefit Tax needs to be accounted for in their March quarter FBT return (due before 31 May). Graham Lawrence provides a useful guide to Fringe Benefit Tax to help businesses avoid making mistakes that could hurt profitability.

The employee share-option route, whereby staff get an option to buy shares at a predetermined price is a popular way to get more buy-in, less churn from staff and hire people you might not otherwise be able to afford.