Tax and SARS knowledge base

How do I claim wear and tear on business equipment?

Last reviewed: 28 August 2026

Direct answer

Do not claim the full purchase price of business equipment as an ordinary expense just because it was paid during the year. Equipment used in a trade can require a capital-allowance or wear-and-tear analysis. Start with the asset, its cost, when it was brought into use, its business use and the current SARS allowance guidance. Accounting depreciation is useful evidence, but it is not automatically the same as the tax amount.

The SARS ITR12 guide deals with capital allowances and wear and tear within the business return information. Your calculation should be capable of being traced from the return back to an asset register and the original documents.

What this means in practice

Create an asset register before you prepare the return. For each laptop, diagnostic device, machine, furniture item, camera, tool or other business asset, record a clear description, supplier, invoice number, acquisition date, total cost, date first used, and the trade that uses it. If the asset is used partly privately, also record the evidence for the business-use percentage.

The date brought into use can be as important as the purchase date. An item bought in advance but not yet installed or available for the business may need different treatment from an item already in service. Keep delivery notes, installation records or first-use evidence where it is relevant. Do not create a date later from memory if the documents show a different date.

Separate the accounting records from the tax working. Businesses often record depreciation in their financial records. A tax allowance may be determined differently, and the relevant method or period can depend on the asset class and the applicable law and SARS guidance. Use the current source for the particular asset instead of copying a rate or useful life from an old spreadsheet, an internet forum or a prior return.

Mixed use needs a reasonable basis. A computer used at home for both a business and personal activity should not be assumed to be 100 percent trade equipment. Keep a note of the work performed, access controls, time records, client work or other evidence that explains the percentage used in the trade. A rounded percentage without a factual basis is weak evidence.

Step-by-step

Build an asset register.

List each item individually, even where several similar items were bought. Include cost, supplier, invoice reference, acquisition date and date brought into use.

Confirm ownership and use.

Keep the invoice and proof of payment. Record the trade using the asset and any private or non-income-producing use.

Check the current allowance treatment.

Consult the current ITR12 guide and the applicable SARS material for the type of asset. Do not substitute book depreciation for a tax calculation without checking.

Calculate from source documents.

Keep the method, period, business-use percentage and calculation as a separate workpaper. Reconcile the total to the asset register.

Consider changes during the year.

Note disposals, theft, insurance claims, trade-ins, damage, non-use or changed business use. Those events can affect the position.

Keep the filing pack.

Retain invoices, proof of payment, asset register, calculation, return and assessment. SARS says return records should be held for at least five years.

Documents and records to keep

Supplier invoice, proof of payment and delivery or installation record.
Asset register showing cost, first-use date and description.
Evidence of business and private use where the asset is mixed-use.
Tax allowance calculation and accounting depreciation reconciliation.
Disposal, trade-in, insurance, repair and recovery records.

Important limits and exceptions

This guide does not give a depreciation rate, useful life or allowance amount. Those details can change and may depend on the asset and the law that applies to it. An asset bought for private use, held as stock, leased under a different arrangement, never brought into use, or used only partly in the trade may not be treated in the same way as equipment fully used in a sole-proprietor business.

Do not claim both the purchase price as a current expense and a capital allowance for the same item. Do not overlook a later disposal or recovery. A loss, recoupment or other tax consequence can arise when equipment leaves the business or a payment is received, so retain those documents and seek advice where the amount is material.

When to get tailored advice

Get advice for a large asset purchase, a mixed-use home-office asset, pooled equipment, a leased item, specialist machinery or an item sold, stolen or insured during the year. TaxProof can help prepare the register and evidence trail for review.