- Many businesses will be impacted by tax reforms enacted as part of the Polish Order, which began in January. The expenditures linked with the company’s automobiles are one of the most intense feelings at the end of the year. Purchases of operating leases on private land will be permitted to continue, but at a cost: beginning in January, it will include revenues from such sales in commercial operations revenues.
The businessman will be liable to pay income tax on the marketplace value of the car sold within six years of the buy-out. Depending on the kind of vehicle and its starting price, it will range from a few thousand zlotys to many tens of thousands of zlotys.
Only six years after the vehicle is no longer in use would it be feasible to sell it without paying taxes or having health insurance. The car may be as ancient as 11 years old, and after extensive usage in the business, it will frequently fail to match the entrepreneur’s expectations. It may become useless at times. Many small firms will be obliged to pay tax or carry the costs of fixing end-of-life cars, a severe problem.
As a result of this predicament, many micro-businesses are searching for more finances to cancel their present lease before the end of the year. It may necessitate payment of many tens of thousands of zlotys in some situations. Companies are hunting for this money, which they may find in various places, including long-term invoicing.
The year 2021 is a year of heightened interest in micro factoring; according to Fine, there will be over 30% more applications for funding, with a fourfold rise in payments for micro and small businesses. As per interactions with companies, some of them are directly prompted by the need to raise rapid funds to purchase a car on the lease before the limits change, especially in the last two months.
Although many business owners consider factoring to be a long-term solution for dealing with late payments, the precise nature of this financing arrangement means it may also be effective in a hurry. Especially in a model like this, where some entrepreneurs use the service “on-demand” – I have a need, I don’t have a need, I don’t use, and it may acquire money in as little as a few hours – says Marek Sikorski.
Recently, we’ve been approached by micro-entrepreneurs who informed us that they need to acquire a car during the requirements analysis. Furthermore, we are approached by leasing firms that have seen a similar demand among their customers and wish to provide micro factoring as an extra tool when purchasing a vehicle. Entrepreneurs that want to acquire an automobile might theoretically hunt for additional cash through banks. However, the creditworthiness evaluation process might take several weeks there, and the decision to give finance in the SME sector is almost always unfavorable. As a result, entrepreneurs are seeking money in other places.
A swift decision on funding and a transfer within 24 hours allows the procedure to be completed before the year’s conclusion.
During the delta outbreak, the New Zealand economy dropped less than expected:
After a statewide lockdown was enacted to battle a community epidemic of COVID-19, New Zealand’s economy fell less than experts projected in the third quarter.
According to Statistics New Zealand in Wellington, the gross domestic product fell 3.7 percent in the third quarter, compared to a revised 2.4 percent growth in the second quarter. Economists predicted a 4.1 percent drop. The economy dropped by 0.3% from a year ago. The outcome on Thursday was less than the Reserve Bank’s forecasted 7% drop, but it should not preclude more interest-rate rises as inflation pressures mount.
The Reserve Bank of New Zealand (RBNZ) has lifted the official cash rate twice, to 0.75 percent, and anticipated a sustained tightening cycle that will take the benchmark rate to 2.5 percent over the following two years last month.
“Given that the drop in activity was significantly below the RBNZ’s estimates, today’s data will only add fire to market expectations of additional interest rate rises,” said Ben Udy, a Singapore-based economist at Capital Economics.
“Activities will build up in the fourth quarter as constraints are gradually relaxed, and output will reach its pre-delta level in the first quarter of 2022.” The New Zealand dollar scarcely moved as a result of the data. It bought US67.80 in Wellington around midday.
While New Zealand was only closed for three weeks in mid-August, Auckland, the country’s largest metropolis and the source of a third of its GDP, was shut down for 15 weeks and only reopened on December 3. On Thursday, a temporary border around the city was dissolved, allowing residents to travel again.
Despite the extended shutdown in Auckland, the RBNZ and bank economists expect the economy to recover in the year’s final three months and increase further in 2022.
Inflation soared to 4.9 percent in the third quarter and is expected to approach 6% this quarter or next, while the jobless rate fell to 3.4 percent and is expected to continue to decline. According to the statistics office, the third-quarter recession was broad-based, with commerce and hospitality leading the way.
Manufacturing production fell 7.6% over the previous quarter. Construction dropped 9.6%, while farm output fell 3.3 percent, owing to a drop in dairy production. Household consumption declined by 7.5 percent, resulting in decreased durable goods purchases. Residential construction led the way with a 5.3 percent drop in investment. Exports declined 4.8 percent, with tourist spending falling as quarantine-free travel with Australia was banned. The economy outperformed most economists’ predictions once again in the September quarter, falling 3.7 percent, while most experts expected a more major loss due to Delta lockdowns.
Even though the drop was the second-largest on record, Finance Minister Grant Robertson said the GDP figures demonstrated the economy’s resilience in the face of the Delta outbreak’s impact.
The smaller-than-expected drop in GDP from July to September, according to Kiwibank, is another reason to predict rising interest rates in the months ahead. It also supported the argument for the Reserve Bank to maintain decreasing the boost given by the low official cash rate, which is now at 0.75 percent, according to BNZ research director Stephen Toplis.