Business tax bill is now law

The Taxation (Business Tax, Exchange of information, and Remedial Matters) Act 2017 received Royal assent on 21 February 2017.

The new legislation focuses on changes to business taxation to make tax simpler. From 1 April 2017, the threshold for self-correction of errors under section 113A of the Tax Administration Act 1994 has increased from $500 to $1000; the use-of-money interest will be reduced or removed for the vast majority of business taxpayers; and most RWT exemption certificates can now be issued for more than one year.

For the 2017-18 and later income years:

  • The 63-day rule for employee remuneration has been made voluntary.

  • The PAYE/ESCT threshold for annual and income year FBT return filing is increasing from $500,000 to $1 million.

  • A new simplified method of deductions for dual use vehicles and premises will be available.

From 1 April 2018, the introduction of the accounting income method will give smaller businesses a new pay-as-you-go option for provisional tax. The accounting income method will allow small taxpayers to use their accounting software to calculate and pay their provisional tax, taking the guesswork out of calculating provisional tax.

Posted on 12 April '17 by , under tax.