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Income Tax Act 2007

General collection rules - Employment-related taxes - Taxable value of fringe benefits

RD 55: Private use of motor vehicle: taxable value in cases of part ownership

You could also call this:

“How to calculate tax on personal use of a partly-owned work vehicle”

If you use a car for your personal activities and it’s provided to you as a job benefit, but you own part of the car yourself (or someone close to you owns part of it), there’s a special way to figure out the value of this benefit for tax purposes. The rules for working this out are explained in [section RD 56] or [section RD 57]. These rules also apply if the car is partly owned by someone connected to you, as described in [section GB 32].

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520112.

Topics:
Money and consumer rights > Taxes
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RD 56: Private use of motor vehicle: when schedular value not used, or

“Rules for reducing taxable value when employer provides a motor vehicle”

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

RD 55Private use of motor vehicle: taxable value in cases of part ownership

  1. If a fringe benefit is provided by making available a motor vehicle to an employee for their private use, and the vehicle is owned in part by the employee (or, if section GB 32 (Benefits provided to employee’s associates) applies, a person associated with the employee), the taxable value of the fringe benefit is determined under section RD 56 or RD 57.

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