Tax relief for businesses as Coronavirus COVID-19 hits profits

Jessica Satherley
Tax relief for businesses as Coronavirus COVID-19 hits profits
The range of relief on offer varies from case to case

As global markets dip due to the novel coronavirus COVID-19, the IRD is offering tax relief to New Zealand firms impacted by the economic downturn. 

Inland Revenue has been contacted by 256 business or individuals about Coronavirus-related issues,” an IRD spokesperson said. 

“162 of the contacts have been from businesses and 94 from individuals, which have been inquiries covering a range of options such as extensions for tax payments and remission of penalty requests,” they said. 

The range of relief on offer varies from case to case but the IRD said individuals and businesses should contact them for personalised help. 

The New Zealand Business Roundtable in China (NZBRiC) has surveyed 170 New Zealand firms operating in China and found that 87% expect to suffer a hit of at least 10% this first quarter of 2020. 

“Of these, almost one third expected at least a 40% reduction in Q1, although just 11% expected this level of impact to last for the full 2020 financial year results,” the report says

“The COVID-19 outbreak is expected to have a significant impact on New Zealand companies doing business in China,” NZBRiC Chair Ivan Kinsella said. 

“While most downturn is expected to be the first quarter, more than four in five Kiwi exporters expect 2020 to end with China revenue down at least 10%,” Kinsella said. 

“We recommend proactive communication with employees and business partners to discuss how your business may be affected,’ NZTE Government website writes. 

“This includes your suppliers, logistics providers, distributors, banks, retailers and e-commerce platforms,” it says. 

Westpac NZ is also offering support to customers financially affected by COVID-19. 

The relief package options may include: 

  •      A temporary overdraft facility;  
  •      Suspension of principal loan payments for up to three months;  
  •      Deferred payment on business credit cards for up to three months. 

Customers requiring access to term deposit funds should also contact Westpac to discuss options. 

Anyone who has been affected should call Westpac on 0800 606 606 to discuss their individual needs or drop into a branch in person.

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