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6.3. Depreciation and Amortization

Assets (except land, trading stock, intangible assets) are depreciated either on the basis of diminishing value or straight-line method (‘SLM’). Assets costing less than NZD 500 are fully deductible.

The prescribed depreciation rates are as follows:

Assets Diminishing Value SLM Rates
Buildings 3% - 10% 2.5% - 5%
Office equipment 10% - 50% 5% - 33%
Transportation 7.5% - 50% 4% - 50%

Other assets are grouped according to industry sector and depreciation rates are specified.

Assets not listed in the depreciation schedule are subject to depreciation at 10% on diminishing value.