How to Calculate Depreciation for SARS in South Africa
Updated 12 March 2026 · 3 min read · 4 steps
SARS depreciation rates 2026: straight-line wear-and-tear under Section 11(e). Computers 3 years, vehicles 5 years, furniture 6 years. Depreciation calculator and worked examples for South Africa.
Step-by-Step Guide
- 1
Identify the asset and its cost
Record the total cost of the asset including VAT (if you're not a VAT vendor) and installation costs. This is the depreciable amount. Land is not depreciable. - 2
Determine the SARS useful life
SARS publishes accepted useful life periods: computers (3 years), office furniture (6 years), motor vehicles (5 years), machinery (4 years), software (2 years). You may use a different period if you can justify it. - 3
Choose the method
SARS allows the straight-line method for Section 11(e) wear and tear. Annual depreciation = cost ÷ useful life. For example: R60,000 computer ÷ 3 years = R20,000 per year deduction. - 4
Apply the deduction
Claim the annual depreciation as a deduction on your tax return. In the year of acquisition, the deduction is pro-rated based on the number of months the asset was used. Assets must be used for trade purposes.
Free Tool
Depreciation Calculator
Calculate asset depreciation using straight-line, declining balance or sum-of-years-digits methods.
Frequently Asked Questions
What depreciation method does SARS accept?
SARS accepts the straight-line method for Section 11(e) wear and tear. The declining balance method is not accepted for tax purposes.
Over how many years do I depreciate a computer?
SARS accepts 3 years for computers and laptops. Software is 2 years.
Can I claim full depreciation in the year of purchase?
Only for assets under R7,000 (small items can be fully deducted). Otherwise, depreciation is pro-rated from the month the asset was first used.
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