FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Leasehold improvement - how is this taxed?

Posted 30 December 2013

Our company has to make improvements to our offices that we lease. I know we should account for these as leasehold improvements and amortize it over the lease period, but will this amortization be a tax deductible expense? (will the accounting and tax treatment be the same?) The total improvement will be less than R7 000 can I rather treat this as a "small items" deduction?

TaxTim TaxTim says:
6 January 2014 at 9:45

Who is paying for these improvements?

Annie says:
13 January 2014 at 6:39

The lessee. (The company that I work for)

TaxTim TaxTim says:
13 January 2014 at 8:53

Leasehold improvements are not the same as normal wear and tear items of purchase. You are allowed to deduct the expense over the number of years it takes to build the improvement - so the total amount divided by the time period - per year is the deduction.

This entry was posted in Tax Q&A and tagged , , , . Bookmark the permalink.




Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.