New Zealand


  • Service: Tax
  • Type: Business and industry issue
  • Date: 12/08/2010

Taxmail - Issue 3, August 2010: Building 'fit-out' review 

Findings of building “fit-out” review released


The review concluded that a “building” only includes structural items (e.g. foundations, building frame, external walls, roof, etc).   KPMG welcomes officials’ findings, having been at the forefront of discussions with Inland Revenue and Treasury on the fit-out review, on behalf of our clients.

Other, non-structural, items can continue to be depreciated separately. The attached taxmail discusses the review’s conclusions in greater detail.


The officials’ issues paper and accompanying draft legislation (available for download at broadly confirms the approach that has been adopted by most taxpayers to date.


It is pleasing that officials have recognised that fit-out for commercial, retail and industrial property does not have a long life, and is periodically replaced due to factors such as obsolescence and changing tenants’ preferences.


We will be working with our clients over the coming weeks to analyse the proposals and draft legislation in greater detail, to ensure their workability.


If you have any questions on the above, please speak to your usual KPMG advisor or contact:


Ross McKinley
Partner - Tax
Phone: +64 9 367 5904


Rachel Piper
Partner - Tax
Phone: +64 9 363 3525


Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

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