employeeemployerreimbursementTaxvehiclevehicle expenses

72 Cents

IRD have issued a new mileage rate to be used when reimbursing vehicle use. The new rate is 72 cents per km (down from 74 cents).

The new rate is effective for the 2016 financial year and onwards and applies to both petrol and diesel vehicles. It does not apply to motor cycles, hybrid and/or electric motor vehicles.

There are still the alternatives to using the above rate, which can be either using other published rates from reputable sources such as AA or calculating the actual running costs.

Remember this rate only applies up to 5,000kms per annum and any claim still needs to be justified via a logbook.

For more information, please contact us