Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229273
Authors: 
Calitz, Estian
Muwanga-Zake, Eva
Sithole, Alexius
Steyn, Wynnona
Year of Publication: 
2020
Series/Report no.: 
WIDER Working Paper No. 2020/49
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. An estimate is offered of the cost to the treasury of these tax expenditures, and of the reduction in the statutory corporate income tax rate should depreciation allowances be terminated.
Subjects: 
tax depreciation allowances
tax investment allowances
tax expenditures
corporate income tax
JEL: 
H25
H32
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-806-1
Document Type: 
Working Paper

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