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

Determination DEP88: Depreciation rate for pet grooming and cleaning equipment

Note to Determination DEP88

The Commissioner has set general depreciation rates for pet grooming and cleaning equipment by adding a new asset category of "Pet grooming and cleaning equipment". The new asset category applies only to services provided for the grooming and cleaning of domestic animals (including horses).

As the determination shows, the pet grooming and cleaning equipment consists of a number of components that have different useful lives. To date we have identified:

  • Pet washers (portable);
  • Pet dryer units (portable);
  • Pet/animal vacuum clipper units;
  • Pet/animal clippers.

An asset category default rate is also set, to provide for other equipment used for pet grooming and cleaning not listed above.


Determination DEP88: Tax Depreciation Rates General Determination Number 88

1. Application

This determination applies to taxpayers who own depreciable property of the kind listed in the table below.

This determination applies from the 2014 and subsequent income years.

2. Determination

Pursuant to section 91AAG 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 a new "Pet grooming and cleaning equipment" asset category, new asset classes, estimated useful lives, and diminishing value and straight line depreciation rates as listed below:
Asset class Estimated useful life (years) DV rate (%) SL rate (%)
Pet washers (portable)
8
25
17.5
Pet dryer units (portable)
5
40
30
Pet/animal vacuum clipper units
5
40
30
Pet/animal clippers
5
40
30
Pet grooming and cleaning equipment (default class)
8
25
17.5

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 7th day of May 2014.

 

Sharyn Rea
Manager, LTS, Technical Standards