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Income Tax Act 2007

Timing and quantifying rules - Spreading of specific expenditure

EJ 7: Film production expenditure for New Zealand films having no large budget film grant

You could also call this:

“Rules for claiming expenses on qualifying New Zealand films without large budget grants”

This section explains how you can take a deduction for money spent on making a New Zealand film. It applies to films that don’t get a large budget film grant and have a final certificate under section EJ 6.

If you spend money on making the film before or during the year it’s finished, you can take the deduction in the year the film is completed. This means you wait until the film is done before claiming the money back.

If you spend money on the film after it’s finished, you can take the deduction in the same year you spend the money. You don’t have to wait in this case.

Remember, this only works for films that meet those two conditions: no large budget grant, and having that special certificate. If your film doesn’t meet these conditions, different rules might apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515110.

Topics:
Money and consumer rights > Taxes
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EJ 6: Certification of New Zealand films, or

“How New Zealand films get official recognition”

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EJ 8: Film production expenditure for other films having no large budget film grant, or

“Tax deductions for film production without large budget grants”

Part E Timing and quantifying rules
Spreading of specific expenditure

EJ 7Film production expenditure for New Zealand films having no large budget film grant

  1. A deduction under section DS 2 (Film production expenditure) for film production expenditure is allocated under this section if—

  2. the film is not one for which a large budget film grant is made; and
    1. the film has a final certificate under section EJ 6.

      1. A deduction for film production expenditure incurred in or before the income year in which the film is completed is allocated to the income year in which the film is completed.

      2. A deduction for film production expenditure incurred after the film is completed is allocated to the income year in which it is incurred.

      Compare
      Notes
      • Section EJ 7 heading: amended (with effect on 1 January 2010), on , by section 34(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section EJ 7 heading: amended, on , by section 125(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EJ 7 heading: amended, on , by section 362(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section EJ 7(1): substituted, on , by section 362(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section EJ 7(1)(a): substituted, on , by section 125(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EJ 7(1)(a): amended (with effect on 1 January 2010), on , by section 34(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section EJ 7 list of defined terms government screen production payment: repealed (with effect on 1 January 2010), on , by section 34(3)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section EJ 7 list of defined terms large budget film grant: inserted (with effect on 1 January 2010), on , by section 34(3)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).