The Government has today confirmed a suite of additional measures to provide relief for businesses during the COVID-19 pandemic.
These include:
- Greater flexibility for taxpayers in respect of statutory tax deadlines;
- Changes to the tax loss continuity rules;
- A tax loss carry-back scheme;
- Measures to support commercial tenants and landlords; and
- Further business consultancy support.
The COVID-19 crisis has had a significant impact on small and medium-sized enterprises (SMEs). Many are facing severe cash flow problems as a result of the restrictions that are necessary to fight the pandemic. SMEs are also affected by the high degree of uncertainty about when normal levels of business activity can resume.
The Government has already introduced a wide range of measures to assist businesses through the crisis. This includes the wage subsidy scheme, the Business Finance Guarantee scheme, and a package of business tax changes. While these measures apply to businesses beyond just SMEs, they provide substantial benefits to the SME sector.
More changes were needed however, to boost confidence and help SMEs get through the crisis. Without further support from the Government, these otherwise viable SMEs may be forced to close down permanently.
To find out more about the business support announcement, you can read the Minister of Finance’s press release and access a fact sheet using the link below.
For information about the tax measures, visit the IR website: ird.govt.nz/covid-19