CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Zealand Issues COVID-19 Guidance For Businesses

New Zealand Issues COVID-19 Guidance For Businesses

by Mary Swire,, Hong Kong

15 April 2020

New Zealand's Inland Revenue Department has set out the range of supports available to businesses in response to the impact of COVID-19.

In a new statement issued for taxpayers, the tax agency said: "Inland Revenue will write-off any penalties and interest for businesses unable to pay taxes on time due to the impact of COVID-19. Don't worry about contacting us right now. Get in touch with us when you can."

"To help get correct payments to people we would like employers to still file their returns as normal. This helps us work out the right amounts for people and helps the Government continue to respond to what is happening in the economy."

As part of its measures to support businesses, the IRD is enabling more flexibility and lowering the threshold for installment arrangements set up in myIR. The new minimum repayment rates are: weekly NZD20 (previously NZD50); fortnightly NZD40 (previously NZD100); and monthly NZD80 (previously NZD200).

The Department has warned that its phone services will be severely limited and the most effective way to contact it will be online and through myIR. Within Inland Revenue, all front office services are now closed and almost of our staff are working from home, it said.

On the Government's wage subsidies, the IRD said: "It is important employers pass on the wage subsidies to workers and process them as part of the employee's normal wages. All deductions (such as PAYE, KiwiSaver and child support) should be made as normal."

Employers won't be liable for income tax or GST on the subsidy received and will not be entitled to an income tax deduction for wages paid from the wage subsidy, the tax agency clarified.

On compliance activities, Inland Revenue has decided to extend the timeframe for filing Basic Compliance Packages (BCPs). The new due date is June 30, 2020.

TAGS: compliance | tax | business | interest | transfer pricing | New Zealand | penalties | services | Compliance

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »