Section EE 31 — Income Tax Act 2007: Annual rate for item acquired in person’s 1995–96 or later income year

EE 31 Annual rate for item acquired in person’s 1995–96 or later income year What this section is about (1) This section is about the annual rate that applies to an item of depreciable property that a person acquires, other than under section FL 2(2) (Treatment of emigrating companies and their shareholders), in their 1995–96 income year or a later income year (not including fixed life intangible property or excluded depreciable property, for which rates are set in sections EE 33 and EZ 15 (Annual rate for excluded depreciable property: 1992–93 tax year)). Subsection (2) applies to specify the annual rate for the item if the requirements in subsection (2A) are met, and subsection (3) applies to specify the annual rate for the item if subsections (2A) and (2) do not apply and the requirements in subsection (3A) are met. Requirements for subsection (2) rate (2A) This subsection applies, and the rate is 1 of the rates given by subsection (2), if the person–– (a) acquires the item on or before 20 May 2010; or (b) decides to purchase or construct the item, meets the administrative requirements in subsection (4), and— (i) enters into a binding contract for the purchase or construction of the item on or before 20 May 2010: (ii) after deciding to purchase or construct the item, incurs expenditure in relation to its purchase or construction on or before 20 May 2010. Rate for item acquired on or before 20 May 2010 (2) If subsection (2A) applies, the rate is 1 of the following: (a) the item's economic rate, special rate, or provisional rate, for an item not described in paragraph (b), (c), or (d): (b) the item's economic rate, special rate, or provisional rate, multiplied by 1.2, for an item that— (i) has not been used or held for use in New Zealand as an item of depreciable property before the date on which the person acquires it; and (ii) is not a building; and (iii) is not a used imported car; and (iv) is not an international aircraft: (c) a diminishing value rate of 15% or a straight-line rate of 10%, for an international aircraft: (d) 0% for a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more. Requirements for subsection (3) rate (3A) This subsection applies, and the rate is 1 of the rates given by subsection (3), if subsections (2A) and (2) do not apply and the person–– (a) acquires the item after 20 May 2010; or (b) decides to purchase or construct the item, and— (i) enters into a binding contract for the purchase or construction of the item after 20 May 2010: (ii) incurs expenditure in relation to the item's purchase or construction after 20 May 2010. Rate for item acquired after 20 May 2010 (3) If subsection (3A) applies, the rate is 1 of the following: (a) the item's economic rate, special rate, or provisional rate, for an item not described in paragraph (b) or (c): (b) a diminishing value rate of 15% or a straight-line rate of 10% for an international aircraft: (c) 0%, for a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more. Administrative requirements (4) For the purposes of subsection (2A)(b), a person must–– (a) have available for the Commissioner documents dated on or before 20 May 2010 that evidence that the person had, on or before 20 May 2010, decided to purchase or construct the relevant item: (b) send to the Commissioner a statutory declaration that the person had, on or before 20 May 2010, decided to purchase or construct the relevant item. Defined in this Act: acquire , annual rate , building , Commissioner , depreciable property , diminishing value rate , economic rate , estimated useful life , excluded depreciable property , fixed life intangible property , income year , international aircraft , New Zealand , straight-line rate , Compare: 2004 No 35 s EE 26 Section EE 31(1): amended (with effect on 20 May 2010), on 21 December 2010, by section 49(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(1): amended (with effect on 20 May 2010), on 28 May 2010, by section 77(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(2A) heading: inserted (with effect on 20 May 2010), on 21 December 2010, by section 49(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(2A): inserted (with effect on 20 May 2010), on 21 December 2010, by section 49(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(2) heading: substituted (with effect on 20 May 2010), on 28 May 2010, by section 77(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(2): amended (with effect on 20 May 2010), on 21 December 2010, by section 49(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(2): amended (with effect on 20 May 2010), on 28 May 2010, by section 77(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(2)(a): amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(4)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(2)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 119(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 31(2)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 119(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 31(2)(c): amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(4)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(2)(d): added, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(4)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(3A) heading: inserted (with effect on 20 May 2010), on 21 December 2010, by section 49(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(3A): inserted (with effect on 20 May 2010), on 21 December 2010, by section 49(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(3) heading: added (with effect on 20 May 2010), on 28 May 2010, by section 77(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(3): amended (with effect on 20 May 2010), on 21 December 2010, by section 49(5) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(3): added (with effect on 20 May 2010), on 28 May 2010, by section 77(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(3)(a): amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(4)(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(3)(b): amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(4)(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(3)(c): added, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(4)(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31(4) heading: added (with effect on 20 May 2010), on 21 December 2010, by section 49(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31(4): added (with effect on 20 May 2010), on 21 December 2010, by section 49(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31 list of defined terms building : inserted (with effect on 30 July 2009), on 28 May 2010, by section 84 of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 31 list of defined terms Commissioner : inserted (with effect on 20 May 2010), on 21 December 2010, by section 49(7) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 31 list of defined terms estimated useful life : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 77(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).