Further economic support for businesses affected by COVID-19 - urgent legislation enacted
As businesses continue to grapple with the economic implications of the COVID-19 pandemic, the Government has enacted urgent legislation to provide further economic support through a number of tax changes contained in the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (the Act). The Act gives effect to a number of tax changes which were previously announced by the Government on 15 April. The key tax changes include:
a temporary measure allowing taxpayers to carry-back their tax losses
granting the Commissioner of Inland Revenue with greater administrative flexibility
clarifying the tax treatment of pension and benefit payments.
These changes build on those already enacted in March by the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020. We have summarised the earlier changes in our previous Tax Tips Alert.
The Minister of Revenue has described the changes as the “single biggest Government support package to businesses via the tax system in modern New Zealand history”, and indicated that further support could be announced in the future.
This content is accurate as at 1 May 2020. This content is for general information purposes only, and should not be used as a substitute for consultation with our professional advisors. If you wish to understand the potential implications of COVID-19 for your business, please get in touch. To find an advisor and to see more of our general guidance for businesses, please visit our COVID-19 webpage at www.pwc.co.nz/covid-19.