Phone: 021 053 4921

From the IRD: Recent changes to support businesses during this time

From the IRD:

"In the last few months, a number of changes have been made to help businesses during this time. For more detail on each of the below, talk with your tax agent, or visit

- The provisional tax threshold has increased from $2,500 to $5,000. This means, if you expect to have a tax bill of less than $5,000 this year, you don’t have to pay instalments through the year.

- The small asset depreciation threshold has increased to $5,000 for the 2020/21 tax year. This means you can write-off the full cost of assets you buy for less than $5,000 this year, which will reduce this year’s tax bill.

- Depreciation on commercial and industrial buildings is now allowed. This could reduce this year’s tax bill.

- The Government has announced it’s intention to change the loss continuity rules to make it easier for a business to keep its losses on the books when changing ownership. This might make it easier to attract new investors.

- Research & Development tax credit changes have been brought forward which means those businesses conducting R&D last year might be able to reduce their tax bill this year."