Depreciation and Wear and Tear Guide
Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.
Wear and Tear Rates
Common rates include office equipment 33.3% over 3 years, furniture 20% over 5 years, vehicles 20% over 5 years, and computers 33.3% over 3 years.
Section 12C Manufacturing
Section 12C provides accelerated allowances for manufacturing assets: 40% in year 1, 20% in years 2 to 5.
Small Business Allowances
Small businesses under Section 12E can claim 50% in year 1, 30% in year 2, and 20% in year 3 for qualifying manufacturing assets.
Frequently Asked Questions
How do I claim this deduction on my tax return?
Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.
What documents do I need?
Keep receipts, invoices, tax certificates, logbooks, and any other proof of the expense. SARS may request these during verification.
Can Admin Boss help with my deductions?
Yes. Admin Boss is a registered tax practice that can review your deductions, ensure compliance, and maximise your tax savings. Visit adminboss.co.za/need-more-info/.
Need Help With Your Tax?
Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.