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Business asset allowances (s12C and s12E)

Manufacturing machinery gets faster write-offs than normal wear and tear, and small business corporations get faster write-offs still.

First-year allowanceR200,000s12C: new manufacturing machinery is written off 40%, then 20% for three years.
  • Year 1 · 40%R200,000
  • Year 2 · 20%R100,000
  • Year 3 · 20%R100,000
  • Year 4 · 20%R100,000
How it works, with your numbers
  1. s12C: new manufacturing machinery is written off 40%, then 20% for three years.
  2. Year 1: 40% of R500,000 = R200,000.
  3. Year 2: 20% of R500,000 = R100,000.
  4. Year 3: 20% of R500,000 = R100,000.
  5. Year 4: 20% of R500,000 = R100,000.
Good to know
  • The asset must be brought into use, not just bought, to start the allowance.
  • If you sell the asset, allowances claimed may be recouped and taxed.

For illustration only. This is a guideline to help you plan, not tax advice: a registered tax practitioner must review and approve the final figures before you file.

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