Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


BUDGET: Improved write-offs for R&D spending to proceed

BUDGET: Improved write-offs for R&D spending to proceed

By Pattrick Smellie

May 15 (BusinessDesk) – The government is to proceed with new a regime allowing start-up companies to cash out all or part of their tax losses from research and development expenditure, and to write off “black hole” R&D spending on unsuccessful projects.

The announcements are expected to cost the government around $58.1 million over four years and follow a consultation process in which both initiatives were canvassed with the tax and business communities.

“R&D-intensive start-up companies will have early access to all or part their tax losses in the form of a cash receipt, rather than carrying those losses forward,” said the Science and Innovation and Revenue Ministers, Steven Joyce and Todd McClay in today’s announcements.

In addition, “all capitalised costs on depreciable, intangible assets (for example, patents) will be deductible over time” instead of allowing only the legal and administrative costs of registering the asset to be depreciable.

A one-off deduction will also be allowed for “black hole” expenditure on intangible assets created in unsuccessful projects.

This change would “ensure businesses are not discouraged from undertaking R&D expenditure by start-up companies will assist in reducing constraints on their cashflow and capital.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news