{"id":72451,"date":"2026-09-02T13:44:45","date_gmt":"2026-09-02T11:44:45","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=72451"},"modified":"2026-09-02T13:44:48","modified_gmt":"2026-09-02T11:44:48","slug":"what-is-depreciation","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/what-is-depreciation\/","title":{"rendered":"A guide to understanding depreciation"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tA guide to understanding depreciation\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tDepreciation can lower your tax bill and give a clearer picture of your business finances. Learn the three main calculation methods and how SARS wear-and-tear allowances differ from accounting depreciation.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-09-02T13:44:45+02:00\">September 2, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"A guide to understanding depreciation\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/what-is-depreciation\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation is the process of recording how physical business assets lose value over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It helps you understand the current value of assets, create more accurate financial reports, and plan for future replacements or upgrades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is also an accounting practice that lets your business track wear and tear on its assets. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can reduce taxable income and provide a clearer picture of financial performance.<\/p>\n\n\n\n<section class=\"wp-block-sage-container is-constrained\"><div class=\"sage-container__inner\">\n<h3 id=\"h-key-takeaways\" class=\"wp-block-heading\">Key takeaways<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Depreciation spreads the cost of a physical asset over its useful life<\/strong>, which can lower taxable income and provide a clearer picture of your business finances.<\/li>\n\n\n\n<li><strong>Three common calculation methods are straight-line<\/strong>, reducing balance, and units of production.<\/li>\n\n\n\n<li><strong>Accounting depreciation and the South African Revenue Service (SARS) wear-and-tear allowance are not always the same figure<\/strong> because SARS uses prescribed write-off periods.<\/li>\n\n\n\n<li><strong>Intangible assets, such as patents and trademarks,<\/strong> lose value through amortisation rather than depreciation.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here\u2019s what we\u2019ll cover:<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-quick-answer-what-is-depreciation\" data-level=\"2\">Quick answer: What is depreciation?<\/a><\/li><li><a href=\"#h-what-is-depreciation\" data-level=\"2\">What is depreciation?<\/a><\/li><li><a href=\"#h-what-is-the-difference-between-depreciation-and-amortisation\" data-level=\"2\">What is the difference between depreciation and amortisation?<\/a><\/li><li><a href=\"#h-who-should-understand-depreciation\" data-level=\"2\">Who should understand depreciation?<\/a><\/li><li><a href=\"#h-why-does-depreciation-matter\" data-level=\"2\">Why does depreciation matter?<\/a><\/li><li><a href=\"#h-what-depreciation-terms-should-you-know\" data-level=\"2\">What depreciation terms should you know?<\/a><\/li><li><a href=\"#h-how-do-you-calculate-depreciation\" data-level=\"2\">How do you calculate depreciation?<\/a><\/li><li><a href=\"#h-how-does-the-sars-wear-and-tear-allowance-work\" data-level=\"2\">How does the SARS wear-and-tear allowance work?<\/a><\/li><li><a href=\"#h-how-can-depreciation-help-your-business\" data-level=\"2\">How can depreciation help your business?<\/a><\/li><li><a href=\"#h-before-you-act\" data-level=\"2\">Before you act<\/a><\/li><li><a href=\"#h-frequently-asked-questions-on-depreciation\" data-level=\"2\">Frequently asked questions on depreciation<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-quick-answer-what-is-depreciation\" class=\"wp-block-heading\">Quick answer: What is depreciation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation is the accounting process of spreading the cost of a physical business asset across its useful life. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It reflects the value an asset loses over time through use, wear and tear, obsolescence, or age. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation helps businesses report asset values more accurately and may reduce taxable income, depending on the applicable tax rules.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Small business survival toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get practical advice to help your business thrive.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-80195606-5387-4569-bfaf-b6a518449b24\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1305268048-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1305268048-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-what-is-depreciation\" class=\"wp-block-heading\">What is depreciation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation is the process of physical, or fixed, assets losing value over time, resulting in their end value being lower than their purchase value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It represents how much value an asset has lost over a period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation can happen in two ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Direct depreciation results from continued use of an asset, such as everyday wear and tear.<\/li>\n\n\n\n<li>Indirect depreciation can happen without physical use, such as when a product upgrade makes an asset obsolete or inflation affects its value.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Almost all physical assets depreciate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Land is a common exception because it does not normally lose value through use and may appreciate over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-physical assets can also lose value over time, but this is called amortisation. It applies to intangible assets such as patents, copyrights, and trademarks.<\/p>\n\n\n\n<h2 id=\"h-what-is-the-difference-between-depreciation-and-amortisation\" class=\"wp-block-heading\">What is the difference between depreciation and amortisation?<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Feature<\/strong><\/td><td><strong>Depreciation<\/strong><\/td><td><strong>Amortisation<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Applies to<\/td><td>Physical assets<\/td><td>Intangible assets<\/td><\/tr><tr><td>Examples<\/td><td>Equipment, vehicles, machinery, and buildings<\/td><td>Patents, trademarks, and copyrights<\/td><\/tr><tr><td>Purpose<\/td><td>Records the loss of value through use, age, wear and tear, or obsolescence<\/td><td>Spreads the cost of an intangible asset over its useful life<\/td><\/tr><tr><td>Recorded as<\/td><td>Depreciation expense<\/td><td>Amortisation expense<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-who-should-understand-depreciation\" class=\"wp-block-heading\">Who should understand depreciation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation is relevant if you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Own business equipment, vehicles, machinery, or buildings.<\/li>\n\n\n\n<li>Prepare financial statements.<\/li>\n\n\n\n<li>Claim <a href=\"https:\/\/www.sage.com\/en-za\/blog\/tax-deductible-expenses-for-small-businesses\" target=\"_blank\" rel=\"noreferrer noopener\">tax deductions<\/a> on qualifying business assets.<\/li>\n\n\n\n<li>Need to assess the value of business assets.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Plan future asset replacements or investments.<\/p>\n\n\n\n<h2 id=\"h-why-does-depreciation-matter\" class=\"wp-block-heading\">Why does depreciation matter?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For a small business owner, depreciation is important for tax and accounting purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The potential tax benefit is that your business may deduct the cost of qualifying assets from taxable income over more than one year, rather than in the year of purchase alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;This can lower taxable income and, in turn, the tax liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For accounting, depreciation can support more accurate financial reports. It shows how much value assets have lost.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you do not account for that decline, you may underestimate costs and overstate the value of your assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spreading an asset cost over its useful life can also help avoid overstating profits in the year of purchase or understating profits in later years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation may also matter when you value your business, apply for a business loan, or plan capital expenditure because each activity can depend on the current value of your assets.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Small business survival toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get practical advice to help your business thrive.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-80195606-5387-4569-bfaf-b6a518449b24\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1305268048-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1305268048-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-what-depreciation-terms-should-you-know\" class=\"wp-block-heading\">What depreciation terms should you know?<\/h2>\n\n\n\n<h3 id=\"h-useful-life\" class=\"wp-block-heading\">Useful life<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The period during which an asset is productive. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After this time, continued use may no longer be cost-effective.<\/p>\n\n\n\n<h3 id=\"h-salvage-or-residual-value\" class=\"wp-block-heading\">Salvage or residual value<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The estimated value of an asset at the end of its useful life. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may be based on a professional quote or a percentage estimate.<\/p>\n\n\n\n<h3 id=\"h-cost-of-an-asset\" class=\"wp-block-heading\">Cost of an asset<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The original purchase price, including taxes and any set-up or delivery costs.<\/p>\n\n\n\n<h3 id=\"h-book-value\" class=\"wp-block-heading\">Book value<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The value recorded on the balance sheet. It is calculated by subtracting accumulated depreciation from the cost of the asset.<\/p>\n\n\n\n<h2 id=\"h-how-do-you-calculate-depreciation\" class=\"wp-block-heading\">How do you calculate depreciation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are three common ways to calculate annual depreciation expense.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The appropriate method depends on how the asset loses value and how it is used.<\/p>\n\n\n\n<h3 id=\"h-1-straight-line-depreciation\" class=\"wp-block-heading\">1. Straight-line depreciation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Straight-line depreciation allocates the same depreciation expense to each accounting period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is often used for equipment that loses value evenly over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if an asset has a useful life of 20 years and no residual value, its value would depreciate by 5% each year.<\/p>\n\n\n\n<h4 id=\"h-formula\" class=\"wp-block-heading\">Formula:<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">(Cost of asset &#8211; salvage value) \/ useful life = annual depreciation expense<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Example: Your company buys a computer for R5,000. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It has a useful life of five years and a salvage value of R1,000.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Depreciable base = R5,000 &#8211; R1,000 = R4,000<\/li>\n\n\n\n<li>Annual depreciation expense = R4,000 \/ five years = R800 per year<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The advantage is predictability because the expense is allocated evenly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A potential drawback is that useful life and salvage value are estimates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If an estimate is inaccurate, the asset may be overvalued or undervalued.<\/p>\n\n\n\n<h3 id=\"h-2-reducing-balance-depreciation\" class=\"wp-block-heading\">2. Reducing balance depreciation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Reducing balance depreciation is an accelerated method. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can be used for assets, such as vehicles, that lose a greater proportion of their value in the earlier years of their useful life.<\/p>\n\n\n\n<h4 id=\"h-formula-0\" class=\"wp-block-heading\">Formula<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Book value x depreciation rate = depreciation expense<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rate is typically higher than the straight-line rate because this is an accelerated method. It is not simply one divided by the useful life.<\/p>\n\n\n\n<h4 id=\"h-example\" class=\"wp-block-heading\">Example:<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A computer costs R5,000, has a useful life of three years, and uses a 40% depreciation rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Year 1: <\/strong>book value R5,000; depreciation R2,000; end-of-year book value R3,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Year 2: <\/strong>book value R3,000; depreciation R1,200; end-of-year book value R1,800.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Year 3: <\/strong>book value R1,800; depreciation R720; end-of-year book value R1,080.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This method recognises more depreciation in the early years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is more complex than straight-line depreciation and usually requires a depreciation schedule for each year of the asset useful life.<\/p>\n\n\n\n<h3 id=\"h-3-units-of-production-depreciation\" class=\"wp-block-heading\">3. Units of production depreciation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The units of production method calculates depreciation according to how much work an asset performs rather than how long it is owned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is commonly used in manufacturing, where equipment output can be measured.<\/p>\n\n\n\n<h4 id=\"h-formula-1\" class=\"wp-block-heading\">Formula:<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">(Units produced \/ total estimated units) x (cost of asset &#8211; salvage value) = depreciation expense<\/p>\n\n\n\n<h4 id=\"h-example-0\" class=\"wp-block-heading\">Example:<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Equipment costs R50,000, has a salvage value of R5,000, is expected to produce 100,000 units, and produces 10,000 units during the period.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Depreciable base = R50,000 &#8211; R5,000 = R45,000<\/li>\n\n\n\n<li>Depreciation per unit = R45,000 \/ 100,000 = R0.45 per unit<\/li>\n\n\n\n<li>Depreciation for the period = 10,000 x R0.45 = R4,500<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This method connects depreciation to actual output.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, output can vary, so accurate production records are essential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are unsure which method to use, ask your accountant for advice based on the asset and your reporting needs.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Small business survival toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get practical advice to help your business thrive.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-80195606-5387-4569-bfaf-b6a518449b24\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1305268048-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1305268048-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-how-does-the-sars-wear-and-tear-allowance-work\" class=\"wp-block-heading\">How does the SARS wear-and-tear allowance work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The depreciation figure you calculate for financial reporting is not necessarily the figure that the South African Revenue Service (SARS) allows you to deduct for tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For tax purposes, SARS grants a wear-and-tear allowance under Section 11(e) of the Income Tax Act. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It uses prescribed write-off periods for different asset types.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, computers are typically written off over three years, rather than the useful life estimate a business might use for accounting purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike standard accounting depreciation, the SARS wear-and-tear allowance generally does not factor in a salvage value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The full cost is written off over the prescribed period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speak to your accountant or SARS about the current write-off periods and rules that apply to your assets.<\/p>\n\n\n\n<h2 id=\"h-what-this-means-for-your-business\" class=\"wp-block-heading\">What this means for your business<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The depreciation method you use can affect reported profits.<\/li>\n\n\n\n<li>Accounting depreciation and SARS tax deductions may not be identical.<\/li>\n\n\n\n<li>Accurate asset records can support budgeting, tax planning, and business valuations.<\/li>\n\n\n\n<li>Reviewing asset values can help you identify when equipment may need to be upgraded or replaced.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-how-can-depreciation-help-your-business\" class=\"wp-block-heading\">How can depreciation help your business?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation connects the cost of a physical asset with its usefulness or ability to produce revenue over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than recording the full <a href=\"https:\/\/www.sage.com\/en-za\/blog\/glossary\/what-is-expenses\" target=\"_blank\" rel=\"noreferrer noopener\">expense<\/a> at the point of purchase, you allocate the cost across the asset useful life.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This can provide a clearer picture of financial performance and may reduce <a href=\"https:\/\/www.sage.com\/en-za\/blog\/net-income-formula\" target=\"_blank\" rel=\"noreferrer noopener\">taxable income<\/a> where the applicable tax rules allow it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can also support capital expenditure planning by helping you anticipate when assets may need to be replaced or upgraded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep accurate records of each asset cost, purchase date, useful life, depreciation method, accumulated depreciation, and current book value. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Review this information regularly and seek professional advice where the accounting treatment or tax position is unclear.<\/p>\n\n\n\n<h2 id=\"h-before-you-act\" class=\"wp-block-heading\">Before you act<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Depreciation for financial reporting and tax deductions can be treated differently.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep clear asset records and confirm the current SARS requirements with your accountant or SARS before making a claim.<\/p>\n\n\n<section class=\"wp-block-sage-faq\">\n\t\n<h2 id=\"h-frequently-asked-questions-on-depreciation\" class=\"wp-block-heading\">Frequently asked questions on depreciation<\/h2>\n\t\t\t<div class=\"faq-items\">\n\t\t\t<div class=\"wp-block-sage-faq-item\" id=\"faq-item-3d28cb46\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-what-assets-can-be-depreciated\" class=\"wp-block-heading\">What assets can be depreciated?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Most physical business assets can be depreciated, including equipment, machinery, vehicles, furniture, and buildings.<\/p>\n\n<p class=\"wp-block-paragraph\">Land is generally not depreciated because it does not normally lose value through use.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-4caf2741\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-what-is-the-difference-between-depreciation-and-amortisation-0\" class=\"wp-block-heading\">What is the difference between depreciation and amortisation?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Depreciation applies to physical assets, such as equipment or vehicles.<\/p>\n\n<p class=\"wp-block-paragraph\">Amortisation applies to intangible assets, such as patents, copyrights, and trademarks. Both spread an asset cost over its useful life.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-ec832b2b\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-is-accounting-depreciation-the-same-as-the-sars-wear-and-tear-allowance\" class=\"wp-block-heading\">Is accounting depreciation the same as the SARS wear-and-tear allowance?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Not necessarily. Accounting depreciation is based on the useful life and residual value used for financial reporting.<\/p>\n\n<p class=\"wp-block-paragraph\">The SARS wear-and-tear allowance follows tax rules and prescribed write-off periods, and it generally does not factor in salvage value.<\/p>\n\n<p class=\"wp-block-paragraph\">Confirm the current rules with SARS or your accountant.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-8e344668\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-why-do-accounting-depreciation-and-sars-allowances-differ\" class=\"wp-block-heading\">Why do accounting depreciation and SARS allowances differ?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">They serve different purposes.<\/p>\n\n<p class=\"wp-block-paragraph\">Accounting depreciation reflects how an asset value is allocated for financial reporting.<\/p>\n\n<p class=\"wp-block-paragraph\">The SARS wear-and-tear allowance is a tax deduction governed by tax rules and prescribed write-off periods.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-aff4afba\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-which-depreciation-method-should-i-use\" class=\"wp-block-heading\">Which depreciation method should I use?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">It depends on the asset and how it loses value.<\/p>\n\n<p class=\"wp-block-paragraph\">Straight-line suits assets that lose value evenly.<\/p>\n\n<p class=\"wp-block-paragraph\">Reducing balance suits assets that lose more value early in their useful life.<\/p>\n\n<p class=\"wp-block-paragraph\">Units of production suits equipment where wear depends on usage.<\/p>\n\n<p class=\"wp-block-paragraph\">Your accountant can advise on the best fit.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-f18e870e\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-does-land-depreciate\" class=\"wp-block-heading\">Does land depreciate?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Land is generally not depreciated because it does not normally lose value through use and may appreciate over time.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-302e7218\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-can-i-depreciate-an-asset-bought-part-way-through-the-year\" class=\"wp-block-heading\">Can I depreciate an asset bought part-way through the year?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Generally, yes.<\/p>\n\n<p class=\"wp-block-paragraph\">Depreciation and the SARS wear-and-tear allowance are usually apportioned according to how many months the asset was in use during the period.<\/p>\n\n<p class=\"wp-block-paragraph\">Confirm the applicable treatment with your accountant or SARS.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-48b2f725\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-what-happens-when-an-asset-is-fully-depreciated\" class=\"wp-block-heading\">What happens when an asset is fully depreciated?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Once an asset reaches the end of its useful life and its book value equals its salvage value, or zero for SARS purposes, no further depreciation is claimed even if the business continues to use it.<\/p>\n\t\t<\/div>\n\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor&#8217;s note: This article was originally published in June 2025 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/business-intelligence\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness intelligence\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/business-management\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness management\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/financial-insights\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tfinancial insights\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/making-financial-decisions\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tmaking financial decisions\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/profit-loss\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tprofit &amp; loss\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/staying-competitive\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tstaying competitive\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/tag\/trending-topics\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\ttrending topics\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-72952 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-business-intelligence tag-electronic-payments tag-financial-insights tag-international-payments tag-making-financial-decisions tag-payment-processing tag-profit-loss tag-revenue business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-962338720-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-962338720-684x384.jpg 684w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-962338720-768x432.jpg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-962338720-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-03T12:19:47+02:00\">September 3, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">1 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-za\/blog\/how-to-write-an-invoice\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow to write an invoice and what to include\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tLearn how to create invoices to get paid on time with our invoice cheat sheet. Discover what to include, invoice types, common payment terms, and tips to avoid overdue invoices.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-73705 post type-post status-publish format-standard has-post-thumbnail hentry category-people-leadership tag-business-management tag-employee-benefits tag-hr-payroll tag-news-insights tag-trending-topics business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-za\/blog\/what-is-employee-self-service\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-44-684x384.jpg\" class=\"card-post__image\" alt=\"Woman in audience raising her hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-44-684x384.jpg 684w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-44-768x585.jpg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-44-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-03T09:00:00+02:00\">September 3, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">6 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tEmpower your team with employee self-service\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-76509 post type-post status-publish format-standard has-post-thumbnail hentry category-people-leadership category-trends-insights tag-employee-benefits tag-employing-people-for-the-first-time tag-hr-payroll tag-trending-topics business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-za\/blog\/what-is-the-organisational-skills-gap\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/03\/The-HR-Payroll-Leaders-Report-CTA-Image-684x384.jpeg\" class=\"card-post__image\" alt=\"A woman looks to camera with the Sage glow line in the background.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/03\/The-HR-Payroll-Leaders-Report-CTA-Image-684x384.jpeg 684w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/03\/The-HR-Payroll-Leaders-Report-CTA-Image-768x518.jpeg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/03\/The-HR-Payroll-Leaders-Report-CTA-Image-1200x810.jpeg 1200w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-29T10:39:40+02:00\">July 29, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is the organisational skills gap and how can businesses close it?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-74360 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accountants tag-business-intelligence tag-profit-loss tag-staying-competitive tag-trending-topics business_type-small-business business_type-medium-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-za\/blog\/what-is-markup-percentage\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/08\/Mar2025_Construction-Commerical_0777-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/08\/Mar2025_Construction-Commerical_0777-684x384.jpeg 684w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/08\/Mar2025_Construction-Commerical_0777-768x512.jpeg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/08\/Mar2025_Construction-Commerical_0777-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-25T12:53:32+02:00\">June 25, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMarkup calculator: how to calculate markup\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-76381 post type-post status-publish format-standard has-post-thumbnail hentry category-people-leadership category-technology-innovation tag-artificial-intelligence tag-business-management tag-hr-payroll tag-trending-topics business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-za\/blog\/what-is-ai-in-hr\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/06\/Ai-in-HR-infographic-image-684x384.jpg\" class=\"card-post__image\" alt=\"A woman stands in front of the Sage glowline with a black background.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/06\/Ai-in-HR-infographic-image-684x384.jpg 684w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/06\/Ai-in-HR-infographic-image-768x432.jpg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/06\/Ai-in-HR-infographic-image-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-23T13:19:28+02:00\">June 23, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is AI in HR and how can you use it responsibly?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Depreciation can lower your tax bill and give a clearer picture of your business finances. Learn the three main calculation methods and how SARS wear-and-tear allowances differ from accounting depreciation.<\/p>\n","protected":false},"author":1774,"featured_media":71386,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"What is depreciation\",\"score\":57},{\"keyword\":\"How to calculate depreciation\",\"score\":61},{\"keyword\":\"Depreciation methods\",\"score\":70},{\"keyword\":\"Straight-line depreciation\",\"score\":61}]","_yoast_wpseo_keywordsynonyms":"[\"Depreciation\",\"\",\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"27","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[27,29],"tags":[315,166,189,335,339,209,214],"business_type":[2,3],"lilypad":[],"context":[],"industry":[],"persona":[12,15,16],"imagine_tag":[52,63,353,361,68,83,85,86],"coauthors":[401],"class_list":["post-72451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","category-trends-insights","tag-business-intelligence","tag-business-management","tag-financial-insights","tag-making-financial-decisions","tag-profit-loss","tag-staying-competitive","tag-trending-topics","business_type-small-business","business_type-medium-business"],"sage_meta":{"region":"en-za","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2023\/09\/GettyImages-1177851223.jpg","imagine_tags":{"52":"Accounting software","63":"Business intelligence","353":"Costs and cash flow","361":"Fixed Assets","68":"Grow your business","83":"Growing business","85":"Small business","86":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/72451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1774"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=72451"}],"version-history":[{"count":6,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/72451\/revisions"}],"predecessor-version":[{"id":76605,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/72451\/revisions\/76605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/71386"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=72451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=72451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=72451"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=72451"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=72451"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=72451"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=72451"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=72451"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=72451"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=72451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}