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Income Tax Act, 1962 (Act 58 of 1962)

Department of Finance

Practice Note No. 39

Deduction in respect of Wear and Tear or Depreciation in terms of Section 11(e) of the Income Tax Act: Machinery, Plant, Implements, Utensils and Articles (Including Vehicles and Equipment) (Excluding Leased Items as Contemplated in Practice Note No. 15 Dated 16 March 1992)

 

 

Date: 10 May 1995

 

1) This Practice Note is supplementary to Practice Note No. 19 dated 30 April 1993.

 

2) Paragraph 6 of Practice Note No. 19 provides that where a taxpayer acquires "small" items (loose tools etc.) at a cost of less than R 250 per item, he will be allowed to write such assets off in full during the year of acquisition. This amount has now been increased to R 1 000.

The amount of R 250 referred to in paragraph 8 of Practice Note No. 19 must be substituted with an amount of R 1 000 to correspond with the amendment in paragraph 6.

 

3) The Schedule to Practice Note No. 19 is supplemented with the following items and their accompanying write-off periods:

 

Write-off Periods Acceptable to Inland Revenue

 


 

Item

Period of write-off (number of years)

1.

Law reports: Sets (Legal practitioners)

5

2.

Race horses

4

3.

Security systems

5

4.

Oxygen concentrators

3

5.

Containers: Stainless steel (transport of liquids)

5

6.

Containers

5

7.

Hot water systems

5

8.

Cellular telephones

3

9.

Runway lights

5