Attached are a number of factsheets covering tax issues facing most businesses.
GST
This factsheet looks at GST issues that clients should watch out for.
GST is charged by GST-registered persons on the supply of goods and services in the course of a taxable activity.
FBT
This factsheet looks at FBT, who has to pay it and when.
Fringe benefit tax (FBT) is a tax imposed on employers who provide fringe benefits to employees. FBT is intended to tax fringe benefits that had previously been received free of tax and encourage a switch from remuneration paid in the form of non-taxable benefits to cash remuneration, which is subject to tax in the hands of the employee.
Income Tax - Allowable Deductions
This factsheet is a general overview of the types of expenditure that is deductible.
Net income (or net loss) is calculated by deducting annual allowable deductions from the total amount of gross income for an income year. Annual allowable deductions are the sum of all amounts of allowable deductions incurred in an income year. Only business expenditure will be an allowable deduction.
Depreciation
This factsheet looks at what depreciation is, and how it is calculated.
Depreciation is allowed as a deductible expense for tax because assets decline in value and wear out as they are used.
Entertainment expenses
This factsheet looks at what can be claimed as entertainment expenditure.
As entertainment expenditure can give significant private benefits, there are
specific limitations on deductions for this when making a claim for tax purposes. These limitations restrict deductibility to 50% on a wide range of entertainment expenditure.
Motor Vehicle expenses
This factsheet looks at motor vehicles expenses record keeping requirements and deductible expenses.
The deductibility of motor vehicle expenses is given special treatment by the IRD reflecting the widespread use of the motor vehicle as a business asset and the ease with which usage can be switched between business and private purposes.
