Tax Policy

Updated information to help businesses claim the R&D Tax Incentive is now available. An updated R&D Tax Incentive guide reiterates the policy intent from the October 2019 Tax Information Bulletin (Vol 31 No 9), and includes the latest news on the operational design. A fact sheet on the R&D Tax Incentive supplementary return provides details of the information required. The R&D supplementary return will be available for filing electronically, after balance date, through myIR.

Draft guidance on proposed changes to the R&D Tax Incentive included in the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill is also available for feedback. While subject to change during the Parliamentary process, the draft guidance covers the proposed changes to the eligibility of organisations that receive exempt income, the refundability rules, and the internal software development definition.

Suggestions for improvements to the draft guidance (PDF 262 KB) can be made on the R&D forum or by email to R+Dincentive@ird.govt.nz. Please provide your feedback by 11 February 2020 so that it can be considered for the next update.

Advisers have sought assistance from Inland Revenue on the correct tax treatment of MKP Milk Price Futures Contracts, which are derivative contracts traded on the NZX Derivatives Market.

Inland Revenue officials have released for feedback a draft general financial arrangements determination for Milk Price Futures Contracts. The proposed determination is intended to clarify and simplify the tax treatment of these contracts. The finalised determination will apply to all such transactions entered into on or after 1 April 2020.

For more information see the consultation page and draft determination. The closing date for submissions is 13 December 2019.