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New Zealand law explained for everyone

Income Tax Act 2007

Income - Excluded income - Definitions

CX 38: Meaning of work-related vehicle

You could also call this:

“What counts as a work vehicle for tax purposes”

A work-related vehicle is a special kind of motor vehicle that your employer uses. It’s not a car. This vehicle has the employer’s identification displayed clearly and permanently on the outside.

If your employer owns the vehicle, it will show the identification they usually use for their business. If they rent the vehicle, it will show either their usual business identification or the identification of the company they rented it from.

You can’t use a work-related vehicle for your own personal trips, except in two situations. You can use it to travel between your home and work if that’s necessary for your job. You can also use it for personal trips that happen to occur while you’re using the vehicle for work purposes.

Remember, these rules are part of the Income Tax Act 2007, which helps determine how certain things are taxed in New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513421.

Topics:
Money and consumer rights > Taxes
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Part C Income
Excluded income: Definitions

CX 38Meaning of work-related vehicle

  1. Work-related vehicle, for an employer, means a motor vehicle that prominently and permanently displays on its exterior,—

  2. if the employer owns the vehicle, the form of identification that the employer regularly uses in carrying on their undertaking or activity; or
    1. if the employer rents the vehicle, the form of identification—
      1. that the employer regularly uses in carrying on their undertaking or activity; or
        1. that the person from whom it is rented regularly uses in carrying on their undertaking or activity.

        2. Subsection (1) does not apply to a car.

        3. A motor vehicle is not a work-related vehicle on any day on which the vehicle is available for the employee’s private use, except for private use that is—

        4. travel to and from their home that is necessary in, and a condition of, their employment; or
          1. other travel in the course of their employment during which the travel arises incidentally to the business use.

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