South Africa Issues Interpretation Note on Accelerated Depreciation for Small Businesses

On 26 July 2016, the South African Revenue Service issued Interpretation Note No. 9 (Issue 6), which concerns the accelerated depreciation for qualifying small businesses corporations (SBC). The accelerated depreciation is a 100% write-off in the year an asset is brought into use for the process of manufacture or similar process, and a three-year write-off (50%, 30%, 20%) for other qualifying assets.

The Note covers:

• The requirements to qualify as an SBC, including:
  • Legal entity requirements…