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Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 35: Special rate or provisional rate

You could also call this:

"Special rates for items that lose value over time"

Illustration for Income Tax Act 2007

You have items that lose value over time, like machines or buildings. A special rate or provisional rate is set for these items under sections 91AAG to 91AAJ of the Tax Administration Act 1994. You can find more information about this in the Tax Administration Act 1994. You cannot set a special rate for some items, like residential buildings. A provisional rate cannot be set for some items, like fixed life intangible property. There is an exception to this rule, which is explained in Section FA 11B(7).

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

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"When you can use different rates to calculate item depreciation"

Part ETiming 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 or a residential 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.

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Notes
  • Section EE 35(2) heading: substituted (with effect on 20 May 2010), on , by section 78(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
  • Section EE 35(2) heading: amended, on , by section 6(1) (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(2): substituted (with effect on 20 May 2010), on , by section 78(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
  • Section EE 35(2): amended, on , by section 6(2) (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(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: 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: inserted, on , by section 6(3)(b) (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 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).