Archive for the ‘Articles’ Category



Tax law change may limit software

Posted on: May 18th, 2012 by nbyfleet No Comments

Inland Revenue appears not to have considered how a change to tax rules could financially impact software developers. The IRD posted a notice on its website last month saying companies can no longer deduct money spent on unsuccessful software projects for tax purposes. This practice had been allowed since 1993. The new rules are a [...]

Tax change threatens software development

Posted on: May 18th, 2012 by nbyfleet No Comments

A tax change could stifle software development and innovation, warns an industry expert. Inland Revenue said last month that companies can no longer deduct money spent on unsuccessful software projects for tax purposes. This practice had been allowed since 1993. The tax department said the change was made because failed software is not directly part [...]

Notice – Income tax treatment of unsuccessful software development

Posted on: May 18th, 2012 by nbyfleet No Comments

Income Tax Treatment of Computer Software was published in and appendix to Tax Information Bulletin Volume Four, No 10 (May 1993) (The TIB item) provides that the cost of unsuccessful software development can be immediately deducted (whether the software is commissioned or developed in house). The TIB item acknowledges that such software is a capital item but allows [...]

IRD ruling could stifle software projects: NZCS CEO

Posted on: May 17th, 2012 by nbyfleet No Comments

Originally published 5/11/2011 on Computer World: Notice that spending on unsuccessful projects isn’t tax-deductible may deter overseas investors, Paul Matthews Says A recent notice from Inland Revenue saying money spent on “unsuccessful” software projects is not tax-deductible, could well lead international companies to think twice about setting up development facilities locally, says NZ Computer Society [...]