Tax depreciation rates for trucks & vans clarified
Tax depreciation rates for trucks and vans to be clarified
The government will introduce legislation to
clarify the tax depreciation rates applying to trucks and
vans, Revenue Minister
Peter Dunne announced today.
"Recent changes to the tax depreciation rules allow motor vehicles such as cars, taxis and minibuses used to transport 12 or fewer people to have a 30% diminishing value depreciation rate before depreciation loading," Mr Dunne said.
"As it is worded, however, the new legislation may also allow trucks and vans to fit into that category of motor vehicle and therefore to qualify for the 30% rate, when the intention of the legislation is that rates of no more than 20% before depreciation loading should apply to these assets.
"The potential ambiguity has caused some uncertainty amongst tax practitioners, so it is desirable to clarify the law as soon as possible."
"Therefore changes clarifying the types of motor vehicles that section EE 25D of the Income Tax Act 2004 applies to will be included in the taxation bill scheduled for introduction in May. Once enacted, the changes will apply from the 2005-06 income year," Mr Dunne said.