As part of the COVID-19 Recovery response, the Inland Revenue allowed depreciation for commercial and industrial building, starting from 1 April 2020.
Now if your business is eligible you’ll be able to claim depreciation deductions in your tax return for commercial and industrial buildings.
|Depreciation Method||Building Depreciation Rate (%)|
Previously, tax depreciation on all buildings was at 0% because of 2011 tax changes.
Residential buildings are not part of these depreciation changes.
But you may be able to claim depreciation for short-stay accommodation (such as AirBnB) if it’s seen as having a commercial substance.
Generally speaking, if there are 4 or more separate units within the same property and they’re used for short-stay accommodation, they can be depreciated.
Contact one of our tax advisory team by emailing email@example.com or simply call 09 281 8885 to discuss your situation today!