Tax Saving Tips for End of FY2024
Financial year 2024 will end on 31 March, so what we can do with tax planning to help us save tax in FY2024. Here are some tips:
Determining Tax Residency
If you’re living or planning to move to New Zealand, it’s important to understand whether or not you are considered a tax resident. Being a tax resident in New Zealand means that you are subject to New Zealand tax on all income earned, both locally and abroad. However, if you are not a tax resident any income sourced in New Zealand will be subject to the relevant New Zealand tax.
What is Approved Issuer Levy
In an effort to streamline taxation processes and ensure a fair tax regime, New Zealand introduced the Approved Issuer Levy (AIL) system. The AIL is a tax measure designed specifically for non-resident investors who receive interest income from investments in New Zealand. This was introduced by New Zealand Government in Budget 1991, the AIL seeks to simplify tax obligations for non-resident investors while promoting transparency and compliance within the financial sector.
Intention of acquiring land and Land Tainting Rules
In the business world, acquiring goods can have two intentions: trading or investing. Most of the business activities related to acquiring will only have the intention of trading, such as fruit importers buy fruit from overseas with the intention of buy low and sell high (Trading and making profit) and will not have the intention of hold the goods and get investment returns.
Tax saving tips for NZ small business
Small business owner often face challenge in cashflow planning and tight budget. Among all the expenses saving tips, knowing how to do tax saving is always a key to your business success.
Setting up an asset sale
Business asset sales can involve a mixture of: taxable (revenue) assets like trading stock, accounts receivable, personal property bought for resale, or patents depreciable (capital) assets like plant or machinery non-taxable (capital) assets like business goodwill.
Bright-line test
A “bright-line test” applies to sales of residential land from 1 October 2015. A sale is taxable if the disposal occurs within five years of acquisition (or two years if the land was acquired before 29 March 2018)...
AML
Money laundering is a process where ‘dirty money’ received from criminal activities...
Guide: Has a motor vehicle been provided to an employee?
If a motor vehicle has been provided to an employee an FBT liability will arise if the motor vehicle is used or available to be used for private use by the employee.
GST on Second-hand goods
If a GST-registered business purchase secondhand goods from an unregistered person. An input tax credit can be claimed in these circumstances if the following criteria are met: