American Chamber supports R&D tax changes

Thursday, 22 March 2001, 5:50 pm
Press Release: American Chamber of Commerce

Changes to the tax treatment of research and development spending will help attract foreign investment in New Zealand, says the American Chamber of Commerce in New Zealand (AmCham).

AmCham executive director Mike Hearn says Revenue Minister Michael Cullen's new accounting provisions were pretty much in line with AmCham's submissions to the government.

The government has agreed that all research and development spending able to be expensed under generally accepted accounting practice will qualify for immediate tax deduction from April 1 this year.

"Finally we giving local and overseas investors the right message,"said Mr Hearn.

"However we called for a total alignment of accounting and tax treatment and also raised the issue of the uncertain tax treatment of amounts carried forward for accounting purposes. Some businesses will not need to apply this generally accepted practice," said Mr Hearn.

"We now look forward to the Ministerial Review into the tax system encouraging a simplified tax approach which ensures the full tax

deductibility of all R&D expenditure."

End

For further information: Mike Hearn, 09 309 9140

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