Provisional tax changes welcomed by small business

Provisional tax changes welcomed by small business

Today, Prime Minister John Key announced changes to how provisional tax can be paid by small businesses. Max Whitehead, CEO of Small Business Voice, is delighted by the news.

“This will have a positive effect on many of the approx. 460,000 small businesses in New Zealand. I fully expect productivity to increase as a result,” says Mr Whitehead. “In fact, it seems the markets agree with me; I see Xero’s shares have gone up already.”

Mr Whitehead says the pay-as-you-go option for businesses with turnover less than $5 million will provide much-needed predictability, particularly for start-ups.

“Provisional tax can be crippling for businesses starting out, so I expect more start-up to now survive to become established. This is good news all round.”

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