Radical Tax Reform in New Zealand
Radical Tax Reform in New Zealand

New Zealand has issued a new resolution, which would remove two types of taxes, and the move is aimed at boosting the country's economic development.

aleqtisady.com ... Today, New Zealand has removed two types of taxes to support local businesses in order to achieve more productive, sustainable and inclusive development in the country.

New Zealand removes two types of taxes for cups to boost economic development As part of the government's economic plan, Finance Minister Grant Robertson and Small Business and Revenue Minister Stuart Nash announced on Monday the removal of two barriers to expansion faced by companies.

Robertson said that at present, the costs associated with exploring whether you want to invest in new assets or business models are not deductible for tax purposes, employers tell us that this can deter them from spending money on finding the best way to do things.

"We are changing this so companies can deduct 'feasibility expenses' from their tax bills, including projects that are not going forward," Robertson said.

The measure will be included in the tax bill, which will be submitted to parliament early next year, meaning the change could start from the beginning of the next tax year.

The second proposal, announced today, will change New Zealand's "loss continuity rules" to make it easier for startups to attract investment and get started.

A company with a year-long loss could use the loss to reduce its taxable income in the future, but the rules don't work well for startups trying to attract new investment.

aleqtisady.com .. The changes announced on Monday as part of the government's economic plan will be based on initiatives already announced.