Machinery, Implements Utensils & Articles | South Africa Tax Guide 2006

Special Depreciation allowance

Any machinery, implements, utensils or articles (other than livestock), acquired by a farmer and brought into use on or after 1 July 1988 for farming purposes, are subject to a depreciation allowance on the cash cost of the asset as follows:

 The asset must be brought into use of the first time by the farmer. The allowance is therefore claimable on new as well as used assets. In order to qualify for the allowance, the asset must satisfy the requirements set out below:

The asset must be brought into use by a farmer

The asset must comprise machinery, implements, utensils, or articles (excluding - livestock; motor vehicles used mainly for conveying persons; caravans; non - crop -spraying aircraft; office furniture or equipment)

It must be brought into use (for the first time by any taxpayer) on or after 1 July 1988 for farming purposes.