Depreciation Allowances

Depreciation is included in your business expenses to allow for the wear and tear of your assets.  All assets purchased over the cost of $500 that have a lifespan of over 12 months, must be depreciated.  Only in some special circumstances can you elect not to depreciate them, and approval for this must be sought from the Inland Revenue Department (IRD).

A fixed asset register must be maintained to show the assets that you are depreciating, their depreciation rate, the amount of depreciation claimed each year, the total depreciation claimed and the current value of the asset.  We can maintain this register for you and it is then included in your Annual Accounts.

If you wish to view the depreciation rates and methods for calculating depreciation, please refer to the IRD Depreciation Guide or to calculate depreciation on a business asset, go to the IRD Depreciation Rate Finder.

If you would like more information about depreciation, please give us a call.

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