GST:  zero-rating of services related to land

Legislation

As amended, section 11A(1)(k) land related services provided to non-residents outside New Zealand at the time the services are performed are eligible for zero-rating, if they are:
• not directly in connection with land in New Zealand or
• not in connection with land in New Zealand and intend to enable or assist a change in physical condition, ownership or other legal status of that land or
• directly in connection to land outside New Zealand

How to build successful working relationships at workplace?

Successful working relationships are required to have happy workplace. These relationships could be with business partners, clients, suppliers and employees.

On 01 Feb 2019 Tax working group headed by sir Michal Cullen has recommended the Government to introduce capital gain tax. The formal report is due to be released to the public on 21 Feb 2019. The government may consider the introduction from 01 April 2021

It is expected the scheme will be broad based with very little and no exemptions, excluding family home.

Sir Michael Cullen is the same person who was behind the introduction of GST in New Zealand. The GST scheme is a broad based with very little exemptions, almost everything in New Zealand attract GST. It makes New Zealand GST unique in the world. New Zealand is the only country in the world who has broad based consumption tax with no exemptions not even on essential items. GST collects significant revenue for the government.

Why thinking is important in success of a company growth?

Overthinking can be dangerous. However, thinking should be in a manner of critically analysing the subject. It should have the ability to reason and have logical judgements. A critical thinker can easily differentiate between rational thoughts based on careful consideration and emotional thoughts based on personal bias. Critical thinker is an active leaner rather than a passive recipient of information and analyse information objectively before jumping to the conclusion.

Why understanding accounting is critical for HR?

Accounting and Human Resource are both crucial areas for a company. Being a Human Resource Manager requires to have number of skills like ability to connect with people at different levels, perform thorough assessment on employee’s skills, character and of course HR planning to meet company’s goals. So, it is important for HR professionals to possess business acumen because it helps to understand the drivers of revenue and cost of their company. Areas of accounting like financial reporting, budgeting and cost information help to make better planning and controlling decisions.

New Zealand Tax Rules for Controlled Foreign Corporation CFC Income

A New Zealand tax resident may have a controlled foreign corporation, which is involved in business of rental. Different tax rules apply for such corporations.

The CFC rules were reformed in around 2009 to make New Zealand businesses compete globally and provide certain exemptions to them. If CFC is in a business of rental this can add some complexities in calculating the exemptions.

General rule of thumb is rental income is attributable income. However, certain exemptions are provided in the legislation.

Is business restructuring right for you?

Is your business struggling financially, operationally or you just do not have enough time to focus on the business.

Have you thought about restructuring your company? Have you heard the term “restructuring”, what is this, is this right for your business?

Do you own or are looking to own residential real estate in New Zealand? Learn more about new tax on real estate

Speculation Tax – New Zealand New Tax on Real Estate

If you own or looking to own residential real estate, you should know about speculation tax. You should also be aware of the Government tax policy to address New Zealand housing affordability.

Why ring fencing rental losses are being introduced

Auckland residential market has been hot topic for several years. It has been going in only one direction upwards. The Government has been trying to make changes in tax policies since 2010. Firstly, they abolished LAQC, and depreciation on building, then introduced bright line test. Currently the bright line test has been extended to 5 years from April 2018 onwards, and Ring fencing of rental losses are being introduced from April 2019.

What is 63-day rule

A person is allowed a deduction for the amount spent on employing people. Payment related to employment could be in the form of wage and salary or payment of leaves. Section EA 4 says payment must be made within 63 days after the end of the income year. Any payment not made within 63 days after the of the income year, becomes income of the person for tax purposes. It means deduction is not allowed for the unpaid portion.