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