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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 to help work out the value of property that loses value over time"

Illustration for Income Tax Act 2007

You have depreciable property, which loses value over time. A special rate or provisional rate is set for some of this property under sections 91AAG to 91AAJ of the Tax Administration Act 1994. This rate helps you work out how much the property is worth. You cannot set a special rate for some types of property, like excluded depreciable property or buildings. A provisional rate cannot be set for fixed life intangible property or excluded depreciable 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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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, 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.

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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).