Accountancy in New Zealand

>> Allowances in New Zealand


Depreciation can be claimed in respect of the capital assets of a business taxpayer, in calculating the taxpayers’ income tax liability. For tax purposes, depreciation is calculated in accordance with prescribed scale rates determined by the Commissioner of Inland Revenue and applied on a diminishing value or straight line. However, not all fixed assets can be depreciated – land is a common example.

In most circumstances a business can choose between the diminishing value and straight line methods of calculating depreciation. The same method does not have to be used for all assets, but whatever method is chosen for an asset, it must be for the full year.

Buildings with a useful life of 50 years or more, cannot be depreciated.

Investment allowance

New Zealand welcomes and encourages overseas investment. However, it does not offer subsidies or tax incentives to encourage investment. Government policy is to keep the fundamentals of the economy sound in the belief that these will give serious investors more confidence than incentives, subsidies or grants.

Tax credits

This area has been covered elsewhere where applicable.


Latest version updated 5th April 2019

Country Breakdown





New Zealand Dollar


$ 185