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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions

EZ 13: Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year

You could also call this:

“Annual rate for depreciable items bought between April 1993 and 1995 tax year-end”

This section explains how to figure out the yearly rate for things you can depreciate that you got after 1 April 1993 but before the end of your 1994-95 income year. It doesn’t include special types of property that have their own rules.

The rate you use depends on what kind of property it is:

If it’s not a building that lasts 50 years or more, you use its economic rate. This is how fast it loses value over time.

If you want, you can choose to use an older rate from before 1993. You can find out about this rate in section EZ 14.

If it’s a building that’s expected to last 50 years or more, the rate is 0%. This means you can’t claim any depreciation on it.

Remember, these rules are just for certain things you bought during a specific time period. Different rules might apply to other property or time periods.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516027.

Topics:
Money and consumer rights > Taxes
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EZ 12: Amount of depreciation loss for item acquired from associated person on or before 23 September 1997, or

“Rules for claiming depreciation on items from associates before 23 September 1997”

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EZ 14: Pre-1993 depreciation rate, or

“Choosing and using old depreciation rates for items acquired before 1995”

Part E Timing and quantifying rules
Terminating provisions

EZ 13Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year

  1. This section is about the annual rate that applies to an item of depreciable property that a person acquires before the end of their 1994–95 income year (not including fixed life intangible property or excluded depreciable property, for which rates are set in sections EE 33 (Annual rate for fixed life intangible property) and EZ 15 respectively).

  2. The rate is—

  3. the item's economic rate, if the item is not a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more; or
    1. the pre-1993 depreciation rate described in section EZ 14, if the person chooses under that section; or
      1. 0%, for a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more.

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        Notes
        • Section EZ 13(2) heading: substituted, on (applying for the 2011–12 and later income years), by section 85(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
        • Section EZ 13(2): substituted, on (applying for the 2011–12 and later income years), by section 85(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
        • Section EZ 13(2)(a): amended, on , by section 69(1) (and see section 69(4) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
        • Section EZ 13(2)(c): amended, on , by section 69(2) (and see section 69(4) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
        • Section EZ 13 list of defined terms building: inserted, on , by section 69(3)(b) (and see section 69(4) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
        • Section EZ 13 list of defined terms building: repealed, on , by section 13(3)(a) (and see section 13(4) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
        • Section EZ 13 list of defined terms estimated useful life: inserted, on (applying for the 2011–12 and later income years), by section 85(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
        • Section EZ 13 list of defined terms provisional rate: inserted, on (applying for the 2011–12 and later income years), by section 85(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
        • Section EZ 13 list of defined terms residential building: repealed, on , by section 69(3)(a) (and see section 69(4) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).