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Income Tax Act 2007

Timing and quantifying rules - Allocation of deductions for excess residential land expenditure - Exclusions from rules

EL 13: Exclusion for property provided as employee accommodation

You could also call this:

“Rules for employee housing don't apply to some work-related accommodation”

If you own residential land and provide it as accommodation to your employees or workers because of their job, you don’t have to follow the rules in Section EL 4. This means you can treat this property differently from other residential properties you might own.

However, there’s an exception to this rule. If the employees or workers living in the accommodation are related to you (like family members), you can’t use this special treatment. But even in this case, if you need to provide the accommodation because your business is in a remote area or because of the type of work you do, then you can still use the special treatment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS223688.

Topics:

Money and consumer rights > Taxes

Housing and property > Renting

EL 12: Exclusion for mixed-use assets, or

“Some residential land isn't subject to Section EL 4 if it's a mixed-use asset”

EL 14: Continuity rules for companies, or

“Rules for companies using leftover money from previous years”

Part E Timing and quantifying rules
Allocation of deductions for excess residential land expenditure: Exclusions from rules

EL 13Exclusion for property provided as employee accommodation

Section EL 4 does not apply to residential land of a person that is property that a person provides to their employees or other workers for accommodation in connection with their employment or service.
Subsection (1) does not apply if the employees or other workers are associated with the person, unless it is necessary for the person to provide the accommodation because of the nature or remoteness of a business carried on by them.

Notes

Section EL 13: inserted (with effect on 1 April 2019), on 26 June 2019, by section 62(1) (and see section 62(2) and (3) for application) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).