Generally in the South African environment costs incurred to acquire capital assets are not deductible when incurred in terms of the general deductions formula.

The costs are deductible under a number of sections that allow taxpayers to deduct the

The costs are deductible under a number of sections that allow taxpayers to deduct the costs over the asset usage period. The legislation has special allowances for the following assets:

Small business corporations

Assets used in the process of general manufacturing

Assets used in the process of manufacturing, distribution of electricity including renewable energy and allowances in respect of energy efficiency savings

Tax allowances applicable to buildings ( and other permanent structures)

Tax allowances applicable to special zoning areas

Deduction in respect of airport and port assets

Allowances in relation to certain industrial policy projects

Special allowances in relation to research and development amongst other special allowances

Contact an expert Veli Ntombela

Head of Tax

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