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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 51C: NZ IFRS 16 leases

You could also call this:

“Rules for tax deductions on international financial reporting standard leases”

If you have an IFRS lease, you can get a deduction for it. IFRS stands for International Financial Reporting Standards. This rule applies when you have a deduction for your IFRS lease under section EJ 10B. The amount you can deduct is the same as the amount that’s worked out and set aside in section EJ 10B. This means you’re allowed to subtract this amount from your income when you’re figuring out how much tax you need to pay.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS484604.

Topics:
Money and consumer rights > Taxes
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DB 51B: Adjustments for leases that become finance leases, or

“How to handle tax changes when a regular lease becomes a finance lease”

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DB 52: Adjustment for change to accounting practice, or

“How to handle tax adjustments when you change your accounting method”

Part D Deductions
Specific rules for expenditure types

DB 51CNZ IFRS 16 leases

  1. This section applies when a person has, under section EJ 10B (IFRS leases), an amount of a deduction for their IFRS lease.

  2. The person is allowed a deduction of the amount of the deduction quantified and allocated under section EJ 10B.

Notes
  • Section DB 51C: inserted (with effect on 1 January 2019), on , by section 30(1) (and see section 30(2) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).