Software development and SaaS expenditure under the policy spotlight | Deloitte New Zealand

▤ Summary

Inland Revenue in New Zealand has opened consultation on how to tax software development spending and SaaS configuration and customisation costs. The paper reviews current treatments, including immediate deduction, depreciation, and the R&D approach under section DB 34. It also examines whether SaaS configuration work should be capitalised and depreciated, with Deloitte arguing that IFRS-aligned expensing would be simpler and create less compliance burden. Submissions on the consultation close on 30 January 2026.

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