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Income Tax Act 2007

General collection rules - Employment-related taxes - Value of fringe benefits

RD 32: Replacement motor vehicles

You could also call this:

“Tax treatment for replacing your work vehicle”

When you replace a car that you use for work, the new car is treated the same as the old one for tax purposes. This applies when figuring out how much the car is used for private reasons. The rule works if the time you test the new car gives a fair idea of how much you’ll use it privately over the whole time you have it. This rule is connected to section RD 31, which talks about how to figure out the value of using a work car for private reasons.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520023.

Topics:
Money and consumer rights > Taxes
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RD 31: Motor vehicle test period, or

“Tracking personal use of company cars to calculate benefits”

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RD 33: Subsidised transport, or

“How subsidised transport from your employer is treated as a taxable benefit”

Part R General collection rules
Employment-related taxes: Value of fringe benefits

RD 32Replacement motor vehicles

  1. For the purposes of section RD 31, a replacement motor vehicle is treated in the same way as the vehicle it replaces if the result ascertained in the test period is likely to be fairly representative of the average availability for the private use of the vehicle during the term.

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