INCOME TAX - WEAR AND TEAR OR DEPRECIATION

South African Revenue Services (SARS) has published Interpretation Note 47 dated 28 July 2009.

This note is effective 1 March 2009 and is in respect of wear and tear or depreciation allowed to be written off machinery, plant, implements, utensils and articles used for trade (fixed assets excluding immovable property and intangible assets).

1. The cost of small items under R7000 (previously R5000) can be written off in full in the year it is purchased.
2. The acceptable write off periods of over 180 different assets are listed by SARS. The assets range from adding machines (do they still exist?) to X-ray equipment..

SARS Interpretation Note 47 (PDF)

GREG BEYKIRCH | FINANCE MANAGER