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Income Tax Act 2007

Deductions - Mineral mining expenditure

DU 1: Mining expenditure: prospecting and exploration expenditure

You could also call this:

“Deductions for mineral miners' prospecting and exploration costs”

If you are a mineral miner, you can get a deduction for money you spend on mining prospecting and mining exploration. Mining exploration deductions have some extra rules you need to follow, which you can find in sections DU 6 and DU 7.

This rule adds to the general permission for deductions and overrides the capital limitation. This means you can deduct these costs even if they are capital expenses. However, you still need to follow all the other general rules about deductions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514092.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Mineral mining expenditure

DU 1Mining expenditure: prospecting and exploration expenditure

  1. A mineral miner is allowed a deduction for the following expenditure:

  2. mining prospecting expenditure:
    1. mining exploration expenditure, subject to sections DU 6 and DU 7.

      1. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

      Notes
      • Section DU 1: replaced, on (applying for the 2014–15 and later income years), by section 41(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
      • Section DU 1(2): replaced (with effect on 1 April 2014 and applying for the 2014–15 and later income years), on , by section 62(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section DU 1 list of defined terms capital limitation: inserted (with effect on 1 April 2014), on , by section 62(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).