Technical tax area: General articles

The Commissioner's Table of Depreciation Rates

The Commissioner's Table of Depreciation Rates lists the general economic depreciation rates and provisional depreciation rates set by the Commissioner.

The Commissioner sets economic rates (commonly referred to as "general economic rates" because they apply to many taxpayers) in determinations pursuant to section 91AAF of the Tax Administration Act 1994. The Commissioner also sets provisional rates in determinations pursuant to section91AAG of the Tax Administration Act 1994.

The Commissioner sets provisional rates for items of depreciable property where less information is available about that particular kind of item than is required to set reliably a general economic rate, such as where the item is new technology or new to New Zealand. After a period, the Commissioner reviews the provisional rate and often replaces it with a general economic rate.

Notifications of draft determinations for general economic rates are published for public consultation in the Tax Information Bulletin and the draft determinations are available here on the Inland Revenue website.

When determinations are finalised, they are published in the Tax Information Bulletin and on the Inland Revenue website.

General economic rates and provisional rates are also listed in various publications, including the Inland Revenue's General Depreciation Rates (IR265) from the Inland Revenue website and in the Depreciation Rate Finder on the Inland Revenue website.

"Determination DEP1: Tax Depreciation Rates General Determination Number 1" ("DEP1") was the first depreciation rate determination the Commissioner issued. DEP1 was issued on 5 April 1993 and published in the Appendices to Tax Information Bulletin Vol 4, No 9 (April 1993). DEP1 lists kinds of items with their corresponding general economic rates set by the Commissioner. Since DEP1 was issued, the Commissioner has set additional general economic rates and provisional rates for other kinds of items in subsequent determinations.

The Commissioner's Table of Depreciation Rates has been referred to as "DEP1", and determinations issued after DEP1 have referred to "amending DEP1" by adding further items and rates. However, more correctly in terms of the legislation, the Commissioner"s Table of Depreciation Rates includes not only DEP1, but other subsequent determinations that set general economic rates or provisional rates. Therefore, depreciation rate determinations now state that the Commissioner is "setting rates" rather than "amending DEP1". Consequently the Commissioner's Table of Depreciation Rates is no longer referred to as "DEP1" and is now referred to as the "Commissioner's Table of Depreciation Rates". This change does not affect the application of any depreciation rates to items of depreciable property.

For more information on depreciation, see the Inland Revenue's Depreciation - A Guide for Businesses (IR260).

Other pages in: General articles

• Protocols between the Solicitor-General and Commissioner of Inland Revenue
• Panel statement RAP 002: Process for resolving potential unintended legislative changes in the Income Tax Act 2007
• Inland Revenue's Public Rulings Unit
• Secondhand goods input tax credits - marine farming licences and leases
• Statement on fringe benefit tax and motor vehicle multi-leases
• Subsidised transport provided by employers to employees - value for fringe benefit tax purposes
• New tax information exchange agreement with the Netherlands on behalf of the Netherlands Antilles
• Notice - Income Tax Act 2007
• The Adjudication Unit - its role in the dispute resolution process
• Removal of 5 cent coins from circulation - effect on GST tax invoices
• Summary of unintended legislative change submissions where Rewrite Advisory Panel considered there was no unintended legislative change

Date published: 06 May 2008

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