DEPARTMENT OF FINANCE: INLAND REVENUE
OFFICE OF THE COMMISSIONER FOR INLAND REVENUE
PRACTICE NOTE: NO 39
DATE: 10 MAY 1995

INCOME TAX: DEDUCTION IN RESPECT OF WEAR AND TEAR OR DEPRECIATION IN TERMS OF SECTION 11(e) OF THE INCOME TAX ACT: MACHINERY, PLANT, IMPLEMENTS, UTENSILS AND ARTICLES (INCLUDING VEHICLES AND EQUIPMENT) (EXCLUDING LEASED ITEMS AS CONTEMPLATED IN PRACTICE NOTE NO 15 DATED 16 MARCH 1992)

1. This Practice Note is supplementary to Practice Note No 19 dated 30 April 1993.

2. Paragraph 6 of Practice Note No 19 provides that where a taxpayer acquires "small" items (loose tools etc.) at a cost of less than R250 per item, he will be allowed to wrlte such assets off in full during the year of aquisition. This amount has now been increased to R1 000.

   The amount of R250 referred to in paragraph 8 of Practice Note No 19 must be substituted with an amount of R1 000 to correspond with the amendment in paragraph 6.

3. The Schedule to Practice Note No 19 is supplemented with the following items and their accompanying write-off periods.
   Write-off periods acceptable to Inland Revenue.
   
   

   ITEM	PERIOD OF WRITE-OFF (NUMBER OF YEARS)
   1. Law Reports: Sets (Legal Practitioners)	5
   2. Race Horses	4
   3. Security Systems	5
   4. Oxygen Concentrators	3
   5. Containers: Stainless steel (Transport of Liquids)	5
   6. Containers	5
   7. Hot Water Systems	5
   8. Cellular Telephones	3
   9. Runway Lights	5