Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 11/15/2013

New Zealand - Tax plan for 2014-2015; R&D proposals 

November 15: New Zealand’s Minister of Revenue released the government’s tax policy work plan for 2014-2015.

The key focus areas are:


  • Improvements to tax and social policy rules, including a review of tax rules for annuities, closely held companies, and measures to improve growth and innovation, including a research and development (R&D) proposal
  • International tax reform, including an active income exemption for branches, mutual recognition, and various items on the recent OECD tax action plan
  • Inland Revenue Department (IRD) business transformation to deliver a 21st century tax system

KPMG observation

The new tax policy work program contains no major surprises, given that a number of the items reflect previously released proposals. It has been observed that IRD’s ambitious business transformation project could have significant implications for both the government and business taxpayers.

R&D expenditures

The government also released a discussion paper aimed at dealing with certain non-deductible / non-depreciable (“black hole”) capitalised R&D expenditures.


It has been proposed to make such costs either depreciable (if they relate to a successful R&D project) or immediately deductible (if unsuccessful).


The government also proposes to clarify the rules for depreciating internally developed software.


Read a November 2013 report [PDF 74 KB] prepared by the KPMG member firm in New Zealand: Government releases 2014-15 tax policy work programme and “black hole” R&D proposals




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now