Make a payment
Technical tax area Ngā tūmomo whakataunga me ngā aratohu

General Determination DEP104: Tax Depreciation Rate for lay-flat hoses


Note to draft Determination:

The Commissioner has been asked to consider a depreciation rate for lay-flat hoses used for hire equipment business purposes.

Lay-flat hoses are generally viewed by the Commissioner as a component of a pump set and not a separate depreciable item. However, in the context of a hire equipment business, due to the variety of lengths that may be required, lay-flat hoses are often hired out as a piece of equipment separate to other equipment, so in these circumstances are viewed as separate depreciable property. The general determination will be available only to hire equipment businesses.


Determination DEP104: Tax Depreciation Rates General Determination Number DEP104

  1. Application
    This determination applies to taxpayers who own items of depreciable property of the kind listed in the tables below.
    This determination applies for the 2018/19 and subsequent income years.
  2. Determination
    Pursuant to section 91AAF of the Tax Administration Act 1994, the general determination will apply to the kind of items of depreciable property listed in the table below by:
    • Adding into the "Hire Equipment" asset categories, the new asset class, estimated useful life, and general diminishing value and straight-line depreciation rates listed below:
       
      Asset class Estimated useful life (years) DV rate (%) SL rate (%)

      Lay-flat hoses

      3

      67

      67

  3. Interpretation
    In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.

This determination is signed by me on the 16th day of August 2019.

Rob Wells
Manager, Technical Standards, OCTC