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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 tax rate for items bought between 1 April 1993 and 1995"

Illustration for Income Tax Act 2007

You acquire an item of depreciable property before the end of your 1994–95 income year. The annual rate for this item is its economic rate, unless it is a building with an estimated useful life of 50 years or more. You can choose a different rate under section EZ 14 or it may be 0% for a building. You need to know what type of property you have to determine the annual rate. The rate depends on the type of property and its estimated useful life. For some properties, the rate is set in other sections like sections EE 33 or EZ 15. The annual rate is important for calculating tax. It applies to items acquired on or after 1 April 1993 and before the end of your 1994–95 income year. You should look at the type of property and its characteristics to find the right rate.

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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.

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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

"Depreciation rate for old items bought before 1995"

Part ETiming 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).