South African tax legislation includes many different allowances. The most commen being wear and tear.
Depreciation is provided on all fixed assets in order to write off the value of the asset over its useful economic life for accounting purposes.
Depreciation is not an allowable expense for tax computation purposes. However, capital allowances (wear and tear) are provided using the rates defined by legislation for each category of asset and are tax deductible.
If the cost price of an item is less than
R7,000 it can be written off immediately.
Tax credits are available to the extent that the amount is not recoverable from the foreign government to whom it was paid. In addition, this tax credit may not be claimed in addition to any relief to which the resident is entitled under any agreement between the governments of
South Africa and the said other country in terms of the Double Taxation Agreements.