SARS Wear and Tear Calculator
Calculate Section 11(e) depreciation for South African businesses — modelled on SARS Interpretation Note 47 (Issue 5) and BGR 7
Asset Details
Depreciation Method
Line
Value
Both
Small Item Write-Off may apply
Summary
Depreciation Curve — Written-Down Value Over Time
Managing your full asset register across South Africa?
AssetAccountant automates SARS wear and tear schedules for every asset class.
Disclaimer: This calculator is provided for general information and demonstration purposes only. Results are estimates modelled on Section 11(e) of the Income Tax Act No. 58 of 1962, SARS Interpretation Note 47 (Issue 5) and Binding General Ruling 7 (Issue 4). AssetAccountant does not guarantee the accuracy, completeness or suitability of these results for any particular purpose. This calculator does not constitute tax advice and should not be relied upon as such. Tax laws and rulings change — always verify calculations with a qualified South African tax professional before making any financial or tax decisions.
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Most South African businesses claim less SARS wear and tear than they are entitled to. The wrong write-off period, a missed first-year pro-ration, or the assumption that straight-line is always the right method — any of these quietly inflates your tax bill year after year.
Under Section 11(e) of the Income Tax Act No. 58 of 1962, you are entitled to deduct the cost of movable assets used for trade over their useful lives. This deduction is the wear and tear allowance. Computers, vehicles, machinery, office equipment — all of it qualifies. SARS publishes approved write-off periods in Binding General Ruling 7, and accepts both the straight-line and diminishing-value methods.
Use the calculator above to generate your year-by-year depreciation schedule. Below, you will find the write-off periods, pro-ration rules, and the recoupment rules that apply when you sell. Accelerated allowances under Sections 12C, 12E, and 12B are covered in full too.
SARS Wear and Tear Allowances at a Glance
Every allowance type available under South African tax law is summarised below — rates, legal basis, and whether year 1 is pro-rated.
The temporary enhanced renewable energy allowance under Section 12BA was not renewed in the 2025 Budget Speech. Assets brought into use after 28 February 2025 fall back to standard Section 12B rates.
What Is the SARS Wear and Tear Allowance?
The SARS wear and tear allowance is formally known as Section 11(e) depreciation, as set out in Interpretation Note 47 (Issue 5). It lets South African taxpayers write off the cost of movable assets used for trade over their useful lives. It applies equally to sole traders, partnerships, close corporations, and companies. Laptops, tools, factory machinery, and delivery vehicles all qualify. The wear and tear allowance is one of the most underutilised deductions available to South African businesses.
Two rules govern the depreciable base. First, the asset must be used for trade. Assets used partly for private purposes qualify only on the trade-use fraction. Second, the write-off base is the cash cost, excluding VAT (for registered VAT vendors) and excluding all finance charges. Interest and financing costs never form part of the depreciable amount.
One point that catches many businesses out: Section 11(e) depreciates assets to zero. There is no residual or scrap value in the SARS formula, unlike IFRS and GAAP accounting depreciation, which typically assumes a remaining value at the end of the asset’s life. Once fully written down, the asset drops off the schedule. Furthermore, selling a depreciated asset above its written-down value triggers recoupment — a tax liability covered in detail below.
SARS-Approved Write-Off Periods Under BGR 7
Binding General Ruling 7 (Issue 4), published 9 February 2021, Binding General Ruling 7 (Issue 4) is SARS’s binding interpretation of how the wear and tear allowance applies. Specifically, it sets out the ordinary useful lives — known as write-off periods — for qualifying assets brought into use on or after 24 March 2020.
The BGR 7 write-off periods most relevant to South African businesses are:
Computers and technology: computers, laptops, tablets and smartphones 3 years; purchased software 2 years; servers and network equipment 3 years; printers and scanners 3 years.
Motor vehicles: passenger motor vehicles and light delivery vehicles 5 years; motorcycles 4 years; trucks (light and heavy) 5 years.
Office and furniture: office furniture such as desks and chairs 6 years; office equipment and multifunction devices 5 years; air conditioners, security systems and CCTV 5 years.
Plant and machinery: general machinery and equipment 5 years; agricultural equipment 4 years; refrigeration equipment 5 years; heavy industrial plant 10 years.
Medical and hospitality: medical and dental equipment 5 years; commercial cooking and refrigeration equipment 5 years; point-of-sale equipment 5 years.
If your asset does not appear in the BGR 7 Annexure, SARS will accept a self-assessed useful life based on the asset’s condition, operating environment, and intensity of use. Any application for a shorter write-off period than listed must be submitted to your SARS branch office before you file the relevant return. If you believe a common asset type is missing from the Annexure entirely, SARS accepts requests to add it — contact your SARS branch directly.
Straight-Line vs. Diminishing-Value: Which Should You Use?
Section 11(e) accepts both the straight-line and diminishing-value methods. However, once you choose a method for a particular asset, you must apply it consistently — switching mid-depreciation is not permitted. The Compare Both tab in the calculator runs them side by side so you can see the exact timing difference for your asset.
How the straight-line method works
The annual deduction is: cost ÷ write-off period (years). A R60,000 laptop fleet with a 3-year life produces R20,000 per year, every year, until the asset reaches zero. Because the deduction is constant and predictable, this method is easy to document and audit.
How the diminishing-value method works
The annual deduction is: written-down value × (1 ÷ write-off period). Because the depreciable base shrinks each year, deductions tail off over time and the asset takes longer to reach zero than under straight-line. At a 100% multiplier — the default in the calculator — the DV rate equals the SL rate, but applied to a declining balance rather than the original cost.
Which produces larger early deductions?
At a 100% multiplier, year 1 is identical under both methods. From year 2 onwards, however, straight-line produces a larger absolute deduction each year because the base stays fixed at original cost. Diminishing value falls progressively and takes longer to fully write off the asset. If you apply a higher multiplier — 150% or 200%, as the calculator allows — deductions front-load more heavily. SARS does not prescribe a multiplier above 100%, so confirm the basis with your tax advisor before filing.
How Is the First-Year Wear and Tear Allowance Pro-Rated?
Standard Section 11(e) wear and tear is always pro-rated in the first year of assessment. The formula is:
“Months held” counts from the month the asset is first brought into use for trade through to the last month of your year of assessment. The SARS wear and tear calculator handles this automatically — enter the date brought into use and your financial year-end.
For most South African individuals, the year of assessment runs 1 March to the last day of February. Companies may operate on a different year-end — the calculator covers all 12 month-end options.
A R120,000 delivery vehicle with a 5-year straight-line write-off is brought into use on 1 October. The business has a 28 February year-end.
That is 5 months in year 1 (October through February).
Year 1 allowance = (R120,000 ÷ 5) × (5 ÷ 12) = R10,000.
Importantly, Section 12C is a notable exception — it does not pro-rate in year 1. The full 40% or 20% applies regardless of when during the year the asset is first used.
Section 12E and Section 12B (small solar only) do pro-rate. The “Pro-rated year 1?” column in the table above captures this for every allowance type.
The R7,000 Small Item Write-Off
Assets costing R7,000 or less per item can be written off in full in the year they are first used for trade, regardless of the asset’s normal write-off period. A R5,000 tablet that would ordinarily depreciate over 3 years can instead be fully deducted immediately.
The R7,000 threshold has applied since 1 March 2009. It is not indexed to inflation. Notably, the small item write-off does not apply to lessors — it is available only to taxpayers who own and use the asset in their own trade.
One common trap: buying multiple identical low-cost items that function together as a single system — ten network switches forming one infrastructure layer, for example — means SARS may treat the whole system as a single asset above R7,000. Each item must function independently and not form part of a set to qualify individually.
The calculator flags this automatically: enter a cost of R7,000 or less and the small item write-off banner shows the full immediate deduction available.
SARS Wear and Tear: Worked Examples with Real Numbers
Example 1 — Office laptop, straight-line, pro-rated year 1
A Cape Town accountancy firm buys a laptop for R18,000 (excl. VAT) on 15 November 2024. The firm’s year of assessment ends 28 February.
- Write-off period: 3 years (computer/laptop per BGR 7 Annexure)
- Annual SL allowance: R18,000 ÷ 3 = R6,000
- Months held in FY2025 (November through February): 4 months
- Year 1 (FY2025): R6,000 × 4/12 = R2,000
- Year 2 (FY2026): R6,000
- Year 3 (FY2027): R6,000
- Year 4 (FY2028): R4,000 — remaining balance
- Total: R18,000 ✓
Example 2 — Delivery vehicle, diminishing value
A Johannesburg logistics company buys a light delivery vehicle for R240,000 (excl. VAT) on 1 June 2024. Year-end: 31 December.
- Write-off period: 5 years; DV rate: 20% per year on declining balance
- Months held in CY2024 (June through December): 7 months
- Year 1 (CY2024): R240,000 × 20% × 7/12 = R28,000 | WDV: R212,000
- Year 2 (CY2025): R212,000 × 20% = R42,400 | WDV: R169,600
- Year 3 (CY2026): R169,600 × 20% = R33,920 | WDV: R135,680
- Year 4 (CY2027): R135,680 × 20% = R27,136 | WDV: R108,544
Under straight-line, year 1 would also produce R28,000 — identical to DV. From year 2 onwards, however, SL produces a fixed R48,000 per full year while DV falls progressively. At a 100% multiplier, straight-line writes the asset off faster.
Example 3 — Section 12C manufacturing plant, new and unused
A Durban manufacturer installs new production machinery costing R500,000 on 1 April 2025. Year-end: 31 March. Section 12C does not pro-rate in year 1 — the full percentage applies from the year of first use regardless of the month.
- Section 12C (new and unused): 40% year 1, then 20% × 3 years
- Year 1 (YE Mar 2026): R500,000 × 40% = R200,000
- Year 2 (YE Mar 2027): R500,000 × 20% = R100,000
- Year 3 (YE Mar 2028): R500,000 × 20% = R100,000
- Year 4 (YE Mar 2029): R500,000 × 20% = R100,000
- Total: R500,000 over 4 years vs 5 years under standard s11(e)
The front-loaded 40% deduction means R200,000 goes against taxable income immediately — a material cash flow advantage for capital-intensive manufacturers.
Example 4 — Recoupment on sale
A Pretoria IT consultancy claimed R30,000 in wear and tear on a server that originally cost R45,000. Written-down value is R15,000. The server is sold for R22,000.
- Sale proceeds (R22,000) exceed WDV (R15,000) by R7,000
- Recoupment included in gross income: R7,000 — taxed at the normal income tax rate
- The recoupment is capped at prior allowances claimed (R30,000), so no further inclusion applies
- Had the server sold for R50,000 (above original cost): R30,000 recoupment + R5,000 capital gain
Accelerated Allowances: s12C, s12E, and s12B
Section 12C — Manufacturing Plant and Machinery
New and unused machinery used in a process of manufacture qualifies for 40% in year 1, then 20% in each of the three following years. Second-hand manufacturing machinery qualifies for 20% per year over five years. Critically, Section 12C does not pro-rate in year 1 — the full percentage applies from the year the asset is first used, regardless of the month.
Section 12C is restricted to plant or machinery used in a manufacturing or similar process. It does not extend to office equipment, vehicles, or software. Additionally, the taxpayer must own the asset — leased machinery does not qualify under this section.
Section 12E — Small Business Corporations
Section 12E provides accelerated write-offs for qualifying small business corporations (SBCs). To qualify, an entity must meet all SBC conditions: gross income not exceeding R20 million for the year of assessment, a qualifying shareholding structure, and active business operations. Always verify SBC status with a tax advisor before claiming.
Non-manufacturing assets use the 50/30/20 pattern, pro-rated in year 1. Manufacturing assets qualify for 100% in year 1, also pro-rated by months. Consequently, a manufacturing asset brought into use on 1 December under a February year-end gets only 3/12 of 100% = 25% in year 1 — not the full 100%.
Section 12B — Renewable Energy
Section 12B provides an accelerated depreciation allowance on plant and equipment used in generating electricity from renewable sources. Solar PV systems not exceeding 1 MW qualify for 100% in year 1, pro-rated by months. Larger systems and other renewable sources — wind, hydro, biomass — follow a 50/30/20 pattern that is not pro-rated.
The temporary 125% incentive under Section 12BA, which covered assets brought into use between 1 March 2023 and 28 February 2025, was not renewed in the 2025 Budget. Assets installed after 28 February 2025 revert to the standard Section 12B rates above.
What Does "Brought Into Use" Mean?
The SARS wear and tear allowance starts in the year of assessment during which the asset is first brought into use for trade — not on the purchase date or invoice date. This distinction matters because your year 1 pro-ration depends entirely on this date. An asset sitting unpacked in a storeroom does not qualify yet. The asset must be operational and genuinely available for use in the taxpayer’s trade.
In practice, the relevant date is the installation or commissioning date. For vehicles, it is the date first driven for business purposes. SARS may request evidence of this during audit, so keep the commissioning record or delivery note.
How to Claim SARS Wear and Tear on Your Tax Return
Claiming correctly depends on your entity type.
Companies (ITR14): Claim wear and tear in the capital allowances section. Maintain a detailed asset register showing cost, date brought into use, write-off period, calculation method, and annual allowance for each asset.
Individuals and sole traders (ITR12): Claim in the Local Business, Trade and Professional Income section. For home-office assets or partially-used assets, calculate and document the business-use apportionment before claiming.
Employees using personal assets for work: Claim in the deductions section of the ITR12. SARS requires a letter from the employer confirming that personal asset use is a condition of employment, together with a calculation showing the business/private apportionment.
Regardless of entity type, keep all supporting records — invoices, asset register entries, and apportionment workings — for at least five years from the date of return submission.
Company vs. Sole Trader: Key Differences for Wear and Tear
Both companies and individuals can claim Section 11(e), but several practical differences matter for tax planning.
| Company | Individual / Sole Trader | |
|---|---|---|
| Year of assessment | Any 12-month period | 1 March – last day of February |
| Tax rate on income | 27% corporate income tax | Marginal rate up to 45% |
| VAT on asset cost | Excluded if VAT-registered | Excluded if VAT-registered |
| s12C eligibility | Yes, in a manufacturing context | Generally no |
| s12E eligibility | Yes, if entity qualifies as SBC | Yes, if entity qualifies as SBC |
| Asset register | Mandatory | Strongly recommended |
| Recoupment on sale | Yes — included in gross income | Yes — included in gross income |
Because marginal rates for individuals can reach 45% versus the corporate rate of 27%, the rand value of the wear and tear deduction is often larger for high-income sole traders. That makes accurate claiming especially worthwhile for owner-operated businesses.
Recoupment: What Happens When You Sell a Depreciated Asset?
When you sell, donate, or otherwise dispose of an asset on which wear and tear has been claimed, recoupment rules under Section 8(4)(a) apply. Recoupment equals the selling price — limited to original cost — minus the written-down value at disposal. The total recoupment cannot exceed the allowances previously granted.
Three scenarios arise in practice:
- Sale price > WDV but ≤ original cost: the full excess over WDV is recoupment, included in gross income and taxed at your normal rate.
- Sale price > original cost: the amount up to original cost is recoupment; the excess above original cost is a capital gain.
- Sale price ≤ WDV: no recoupment arises. A scrapping allowance under Section 11(o) may instead be available if the asset is destroyed or permanently unusable.
This is exactly why maintaining an accurate written-down value for every asset matters. The depreciation schedule produced by the calculator gives you the WDV at each year-end — the precise figure you need when any disposal occurs.
Managing a Full Asset Register — Beyond One Calculation
One asset, one calculation — that is what the calculator above handles well. South African finance teams managing hundreds of assets across vehicles, IT, plant, and fixtures need something that scales.
The Spreadsheet Problem
Every new asset requires a write-off period decision, a start-month pro-ration, a method election, and consistent application across years. Multiply that across 200 or 500 assets with a mixed year-end structure, and the SARS-aligned register becomes a significant maintenance burden. Spreadsheet errors — wrong write-off period, missed pro-ration, incorrect DV formula — produce either understated deductions (tax left on the table) or overstated ones (audit exposure and penalties). Either way, the finance team spends time correcting problems rather than adding value.
If you are currently using Xero, this breakdown of where Xero’s built-in fixed assets module falls short for South African businesses is worth reading before your register grows any further.
Running QuickBooks? There is a dedicated comparison for South African businesses that covers the same ground.
A Better Approach
AssetAccountant automates SARS Section 11(e) wear and tear schedules across every asset in your register — full depreciation schedule, current written-down value, and recoupment implications, all calculated automatically against your year-end. It also maintains parallel IFRS/GAAP accounting books and SARS tax books side by side, because SARS tax depreciation and accounting depreciation follow different rules and will almost never match.
