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Depreciation allowances in South Africa

Author

Listed:
  • Estian Calitz
  • Eva Muwanga-Zake
  • Alexius Sithole
  • Wynnona Steyn

Abstract

Nowadays, tax depreciation allowances are used less as instruments of macroeconomic stabilization and more as long-term measures to stimulate investment. This paper tabulates the types of accelerated depreciation allowances in South Africa and calculates the magnitude of these benefits in addition to standard across-the-board accounting depreciation by companies. Using anonymized tax assessment data from the South African Revenue Service, the analysis generates the aggregate and sectoral composition of tax depreciation and tax investment allowances for 2014-17.

Suggested Citation

  • Estian Calitz & Eva Muwanga-Zake & Alexius Sithole & Wynnona Steyn, 2020. "Depreciation allowances in South Africa," WIDER Working Paper Series wp-2020-49, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-49
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    References listed on IDEAS

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    Keywords

    Tax depreciation allowances; Tax investment allowances; Tax expenditures; Corporate income tax;
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