Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 18B: Cost: some depreciable intangible property

You could also call this:

"What you paid for things you can't touch, like patents or designs, after 7 November 2013"

When you buy something that you can't touch, like a patent or a design, you need to know its cost. The cost includes what you spent on the underlying item that gives rise to, supports, or is the item you hold. You must have spent this money on or after 7 November 2013 for certain items like patents, plant variety rights, or design registrations.

You can include the cost if you spent money on or after 7 November 2013 on items like patents or design registrations. The cost is included if you are not allowed to claim the money you spent as a deduction under other rules, as stated in section EE 16. This rule applies to items like patents, plant variety rights, or design registrations that you bought on or after 7 November 2013.

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This page was last updated on 20 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6763702.

EE 18: Cost: change from diminishing value to straight-line method, or

"How to adjust cost when switching depreciation methods"

EE 19: Cost: fixed life intangible property, or

"How to calculate costs for fixed life intangible property"

Part ETiming and quantifying rules
Depreciation

EE 18BCost: some depreciable intangible property

For the purposes of section EE 16 and this subpart, the cost to a person for an item of depreciable intangible property or a plant variety rights application (the amortising item) includes an amount of expenditure incurred by the person for an item of intangible property (the underlying item) if—
the underlying item gives rise to, supports, or is an item in which the person holds, the amortising item; and
the amount of expenditure is incurred by the person on or after 7 November 2013, if the amortising item is 1 of—
1. a patent or a patent application with a complete specification lodged on or after 1 April 2005:
2. plant variety rights:
3. a plant variety rights application:
4. a design registration:
5. a design registration application:
6. industrial artistic copyright; and
the person is denied a deduction for the expenditure under a provision outside this subpart.

Notes

Section EE 18B: inserted (with effect on 1 April 2011 and applying for the 2011–12 and later income years), on 24 February 2016, by section 117(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 18B: amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on 24 February 2016, by section 118(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 18B(b): replaced (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on 24 February 2016, by section 118(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 18B list of defined terms design registration: inserted (with effect on 1 April 2015), on 24 February 2016, by section 118(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 18B list of defined terms design registration application: inserted (with effect on 1 April 2015), on 24 February 2016, by section 118(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 18B list of defined terms industrial artistic copyright: inserted (with effect on 1 April 2015), on 24 February 2016, by section 118(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).