Trusts play a significant role in managing wealth, protecting assets, and ensuring succession planning in New Zealand. However, with increased scrutiny from Inland Revenue (IRD) under evolving tax regulations, not all trusts are subject to the same compliance obligations. Understanding [read more...]
At The Accounting Hub, we often act for incorporated societies set up for a range of purposes including industry associations and community organisations. Sometimes we get asked questions along the lines of “if we’re an incorporated society, aren’t we tax-exempt?” [read more...]
Each year, the government introduces legislation to set the tax rates for the upcoming year, and this time they’ve included several changes with a stated aim of simplifying the system and enhancing its role in driving productivity. The Taxation (Annual [read more...]
Grants and subsidies are essential for not-for-profits to fund their initiatives, but the associated tax implications can be complex. While not-for-profits that are registered charities are exempt from paying income tax on most types of income, this does not automatically [read more...]
In the world of professional services, understanding when income is recognised, or “derived,” for tax purposes is important. We are occasionally asked by professionals if it is possible to account for their income on a “cash basis”, as this generally [read more...]
If you’re owed money and it seems unlikely you’ll ever get paid, you might be able to write off the debt to reduce your taxable income or claim back GST you’ve paid if you are on the invoice basis for [read more...]
Dealing with GST compliance can be tricky for short-term accommodation providers, especially with recent legislative changes. As of 1 April 2024, the “app tax” mandates that GST be collected on all services offered through electronic marketplaces, such as Airbnb, regardless [read more...]
In residential property investment, a mixed-use asset refers to a property that serves both private and income-earning purposes, and is unused for 62 days or more during the tax year. This means the property is used personally by the owner [read more...]
Starting from the 2024-25 financial year, the tax depreciation rate for commercial and industrial buildings will revert to 0%. However tax deductions for depreciation on commercial fit-outs will still be applicable. Since 2010, there have been changes to the ability [read more...]
Purchasing a property for short-term lets is a big financial decision. You need to consider the price, location, maintenance requirements, and the list goes on. Often a secondary consideration, the ownership structure of your property is also vitally important. Whether [read more...]
