Working From Anywhere - are these costs deductible?

Reading a Stuff Article about a resort in Bali, Indonesia, that offers a "Work from Anywhere" (WFA) package, where travelers can move in and work from the resort for a month. Contractors and business owners based in New Zealand who can work remotely could take advantage of similar WFA arrangements at travel resorts around the world by making work the predominant purpose of their trip.

To ensure that work is the predominant purpose of the trip, an itinerary should be planned (and followed) around their work committments. This means setting a schedule and keeping track of their work hours. Contractors should also keep invoices and receipts for all work-related expenses, such as accommodation, meals, and transportation, as these may be deductible for tax purposes.

In terms of claiming these expenses for tax purposes, detailed records and receipts of all expenses incurred during their trip should be kept. These records should include information such as the date of the expense, the amount spent, and the purpose of the expense.

According to the IRD's guidelines on business travel expenses, travel expenses incurred for work-related purposes are generally deductible for tax purposes. However, the deductibility of these expenses may depend on whether the travel is considered to be primarily for business purposes or not. If the trip is considered to be primarily for personal reasons, any deductions claimed must be apportioned based on the proportion of the trip that is for business purposes.

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Disclaimer: Information provided to the best of the authors knowledge at time of publication.  Laws are subject to change and independent advice should be sought.  The above information is general in nature and should not be construed or relied on as a recommendation.