Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 35: Special rate or provisional rate

You could also call this:

“How to set special or provisional depreciation rates for certain assets”

When you want to set a special rate or provisional rate for something that can be depreciated, you need to follow some rules. These rates are set under sections 91AAG to 91AAJ of the Tax Administration Act 1994.

You can’t set a special rate for some types of property. These include excluded depreciable property, special excluded depreciable property, and buildings.

There are also rules about provisional rates. You can’t set these for fixed life intangible property or excluded depreciable property.

Sometimes, there are exceptions to these rules. For example, Section FA 11B(7) talks about adjustments for certain operating leases. This section can override the rules we just talked about.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514625.

Topics:
Money and consumer rights > Taxes
Previous

EE 34B: Annual rate for design registrations, or

“How to work out the yearly rate for claiming design registration costs”

Next

EE 36: Using economic rate or provisional rate instead of special rate, or

“When you can use different rates to calculate item depreciation”

Part E Timing and quantifying rules
Depreciation

EE 35Special rate or provisional rate

  1. A special rate or a provisional rate is set for an item of depreciable property under sections 91AAG to 91AAJ of the Tax Administration Act 1994.

  2. A special rate may not be set for an item of excluded depreciable property, an item of special excluded depreciable property, or a building.

  3. A provisional rate may not be set for an item of fixed life intangible property or an item of excluded depreciable property.

  4. Section FA 11B(7) (Adjustments for certain operating leases) overrides this section.

Compare
Notes
  • Section EE 35(2) heading: replaced, on , by section 56(1) (and see section 56(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section EE 35(2): replaced, on , by section 56(1) (and see section 56(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section EE 35(4) heading: inserted, on , by section 356 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section EE 35(4): inserted, on , by section 356 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section EE 35 list of defined terms building: inserted, on , by section 56(2)(b) (and see section 56(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section EE 35 list of defined terms building: repealed, on , by section 6(3)(a) (and see section 6(4) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
  • Section EE 35 list of defined terms residential building: repealed, on , by section 56(2)(a) (and see section 56(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section EE 35 list of defined terms special excluded depreciable property: inserted, on , by section 56(2)(b) (and see section 56(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section EE 35 list of defined terms special excluded depreciable property: repealed, on , by section 6(3)(a) (and see section 6(4) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).