Chartered Accountants

Mileage Rate for Motor Vehicle Expenditure

Inland Revenue releases a Statement relating to expenditure incurred for the business use of a motor vehicle.

A self employed person may use the three methods to calculate the proportion of business use of a motor vehicle, namely:

  1. actual records;
  2. logbook; or
  3. mileage rate

The mileage rate applies to:

  • self employed taxpayers;
  • up to a maximum of 5,000 kilometres of work-related travel each year;
  • motor vehicles irrespective of engine size whether they are powered by petrol or diesel;

The mileage rate does not apply to motorcycles.
The mileage rate set by the statement for motor vehicles is 72 cents per kilometre.
The mileage rate applies for the 2016/2017 income year.

Source: IRD website

< back to articles