Results 1 to 3 of 3

Thread: Limit for writing off small assets

  1. #1
    New Member
    Join Date
    Oct 2007
    Thanked 1 Time in 1 Post

    Limit for writing off small assets

    I've read in a few places that in the 2006 budget speech it was proposed that:
    "the threshold below which small assets may be written off in full in the year of acquisition will be increased from R2000 to R5000 on 1 March 2006."

    Was this actually passed into law?

    I can't find this limit stated on any government websites or on SAICA website.

    (I had to buy a generator for my business earlier this year that was just over the R2000 limit)


  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Durban, South Africa
    Thanked 2,397 Times in 2,004 Posts
    Blog Entries
    I know for the purposes of the 2007 tax year the limit was R5 000.00 (per my auditors).

    I suspect SARS does "official" notification via practice notes. Maybe one of the tax/accounting expert members can confirm that. All I know is my auditors arrive with a little book with this type of information. The same book has depreciation rates for different types of assets too.
    Seeing opportunity changes nothing. Seizing opportunity and running with it changes lives.

  3. #3
    Silver Member
    Join Date
    Jun 2008
    Thanked 76 Times in 56 Posts
    Yes, well spotted & egg on the face of Government - the proposal was never tabled or promulgated and it was only ever mentioned in that year's budget speeech, but it has been SARS practice to allow the R5 000.

    All other acceptable rates are reflected in Practice Notes 19 & 35 issued by SARS.

  4. Thank given for this post:

    Dave A (12-Nov-08), duncan drennan (12-Nov-08)

Similar Threads

  1. Replies: 1
    Last Post: 22-Feb-08, 04:38 PM
  2. SARS intensifies Small Business Tax Amnesty campaign
    By Snoopy_inc in forum Business Finance Forum
    Replies: 6
    Last Post: 21-Jun-07, 10:00 PM
  3. New survey of small business by Stats SA
    By Dave A in forum General Business Forum
    Replies: 3
    Last Post: 24-Nov-06, 04:34 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts