It has been proposed that Inland Revenue have the ability to remit use of money interest (UOMI) for businesses or individuals who are unable to make their tax payments on time due to COVID-19. This would apply to payments due on and after 14th February 2020, and the length of time it applies for would be dependent on the circumstances of individual businesses.
Other options currently available to help businesses to meet their tax payments include setting up instalments, re-estimating provisional tax, remitting late payment and filing penalties, and severe hardship debt write-offs. There are also the newly-introduced changes to business tax as part of the COVID-19 government relief package, which include an increase to the provisional tax threshold, an increase to the instant asset write-off, and depreciation deductions for commercial and industrial buildings.
If you are likely to struggle to meet your tax payments (GST, income tax, PAYE etc), we recommend contacting IRD via myIR as soon as possible, and at least prior to the tax due date. Alternatively, please contact us. Together we can look at your available options for COVID-19 tax relief and help take the pressure off.
There are three tax due dates coming up in the very near future:
- 30th March 2020 – second instalment of 2020 provisional tax for businesses with a 30th June balance date
- 7th April 2020 – 2019 terminal tax is due
- 7th May 2020 – third instalment of 2020 provisional tax for businesses with 31st March balance dates. GST returns and payments are due for GST-registered businesses for the 2 or 6 months ending 31st March 2020.