8. Small Business Entities (SBEs)
If you carry on a business and your annual turnover is less than $10 million, you will be eligible to be treated as a SBE. The benefits of being a SBE taxpayer are, among other things:
· Either cash/accrual accounting method available
· simplified trading stock rules where businesses only need to conduct stocktakes and account for changes in the value of trading stock in limited circumstances, and
· simplified depreciation rules where most depreciating assets costing less than $20,000 each are written off immediately. Most other depreciating assets are pooled and deducted at a rate of either 15% for the first year of acquisition or 30% for each year after the first year.
* Please call your Client Manager who can answer any query you may have on this matter.
Please note that you are required to forward all the above documents to us in order to prepare your financial statements and tax return. The above list of documents, while being quite comprehensive, is not meant to be exhaustive. If you are not certain whether additional information/documents are required or some of the documents are missing, please feel free to give us a call.