Transcription of INTERPRETATION NOTE: NO. 47 (Issue 3) ACT - SARS
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INTERPRETATION NOTE: NO. 47 ( issue 3) DATE: 2 November 2012 ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act) SECTION : SECTION 11(e) SUBJECT : WEAR-AND-TEAR OR DEPRECIATION ALLOWANCE CONTENTS PAGE Preamble .. 2 1. Purpose .. 2 2. Background .. 3 3. The law .. 3 4. Application of the law .. 4 General principles .. 4 Qualifying assets .. 4 Non-qualifying assets .. 5 Amount allowable .. 6 Use requirement .. 6 Apportionment .. 6 Value of a qualifying asset for purposes of section 11(e) .. 6 General 6 Foundations and supporting structures .. 7 Moving costs .. 7 Qualifying assets acquired by way of donation, inheritance or as a distribution in specie.
3 . 2. Background . This Note provides guidance on the circumstances under which the wear-and-tear or depreciation allowance provided for in section11
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