Tax amendment
(Posted 07/06/2006)
Tax depreciation rates amended
The
Inland Revenue has published new tax depreciation rates on their
website which apply to all types of assets used for business in New
Zealand. The rates take effect on 1 April 2005 for all non-building
assets and 19 May 2005 for buildings.
Excluding building structures, rates have increased by up to 34 per
cent which is potentially advantageous to business. Building
structures have generally decreased by 1 per cent. All property
owners should undertake a depreciation analysis of any building
structures, fit out and chattels to see what they can take
advantage of. These new rates appear to have been published on 28
April 2006 following recently passed legislation.
Previous rates were based on the estimated useful life of an asset
taking account of the residual value which is normally at 13.5 per
cent. The new regime appears to have moved away from that method of
calculation and has greatly accelerated the majority of
depreciation rates.
IRD link here
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