Unlike in other jurisdictions (e.g. Australia) In New Zealand for NZ tax, the IRD does not mandate a relationship between an asset's effective life and its depreciation rate.


Which means you can see what might ordinarily seem like unusual depreciation rates differing between accounts and tax.



The IRD makes its own depreciation rate and life determinations as per:

https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir200---ir299/ir265/ir265-october-2023.pdf

Thus in AssetAccountant, for NZ registers/assets, we don't enforce a 100 ÷ effective life = Depreciation rate. 

Here is another guide to consult:


https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir200---ir299/ir260/ir260-2022.pdf


Ressessments


For reassessments of assets in New Zealand, AssetAccountant will apply the rate to the remaining WDV on the asset being reassessed.    


The primary reason for this is that most tax jurisdictions treat effective life as the basis for working out the applicable rate.


In a typical reassessment scenario, users will provide either the end date for depreciation or the remaining life of the asset as at the date of the reassessment.  


In New Zealand, as described above, there is no relationship between life and rate for tax.


So, while AssetAccountant will use the same basis for the reassessment (remaining WDV), and will suggest an applicable rate on the basis of the remaining effective life for manual reassessments, when it comes to bulk reassessments AssetAccountant will have to rely on the user to provide the applicable rate.