Loss making startup companies will be able to "cash out" all of their tax losses from R&D spending, Science and Innovation Minister Steven Joyce and Revenue Minister Todd McClay said.
Also, all businesses will be allowed tax deductibility for R&D "black hole" spending which currently is neither deductible or able to be depreciated.
In addition, businesses will be entitled to a one off deduction on capitalised development spending on intangible assets that are subsequently written off.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11255333
I'm interested in how this can be expected to affect the business environment over the next few years. For example:
1. Will this make a difference to your startup or startup plans? How?
2. How will this affect existing software based startups in general?
3. Will this increase startup activity in NZ?
Any other reflections are welcome.
Thank you!
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