With the aim of being better able to manage cash flows and to meeting tax obligations with greater ease, John Key announced the following changes aimed at making life easier for SMEs;
Reducing the size of provisional tax repayments
Reducing the Inland Revenue "use of money interest" (UOMI) rate
Raising the GST payments basis threshold
Raising the GST registration threshold which will also allow some businesses to deregister for GST
Allowing legal expenses to be fully deductible in the year in which they were incurred in some instances
Raising the threshold for PAYE once-a-month filing and payments
Raising the Fringe Benefit Tax (FBT) annual filing threshold
Raising the threshold for minor benefits that can be provided to employees without attracting FBT
Lowering the FBT interest rate applicable to employment related loans
"Fast-tracking" legislative changes to simplify the tax obligations for SME's
The above are very brief comments on the changes and we look forward to helping you understand them better.
