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CAPITAL ALLOWANCES AND CHARGES (Plant and machinery (Small items as plant,…
CAPITAL ALLOWANCES AND CHARGES
Schedule 3 - a mechanism to claim tax relief
Qualifying criteria
Incurred qualifying plant/building expenditure
Used such assets in business
Carrying on a business
Qualifying plant expenditure(Para 2,Sch 3)
Capital expenditure
Input tax
Plant and machinery
Small items as plant
Human is not plant
Move able partitions as plant
Light fittings are not plant
Floating restaurant is not plant
Car park is plant
Book as plant
Golf course is not plant
Horse as plant
Installation of plant/machinery
The cost - qualify for capital allowance
Foreign exchange difference
The cost -acquired from overseas has to take into account of any exchange differences
Initial allowance
Imported heavy machinery
Environment protecting equipment
Public transport companies/Natural gas refueling
Mining, timber and construction business
Assets bought and sold in the same year
Meaning of 'Owner"
Eligibility of initial allowance(Para 13)
Meaning of 'In Use'
Annual allowance
Accelerated capital allowance(ACA)
Reinvestment in qualifying projects
Power quality equipment - company
Agricultural sector
Industrialized building system
Recycling of waste - company
Tun Razak Exchange
Information and communication technology (ICT) equipment
ACA on small value assets
Capital allowance is available for qualifying plant expenditure incurred in carrying in a business
Annual allowance rate
Segregated to three classes
Plant and machinery (14%)
Heavy machinery, motor vehicles (20%)
Office equipment. furniture and fittings, others (10%)
The eligibility(Para 15, Sch 3)
Conditions to fulfilled
Asset owned by the taxpayer ate the end basis of period
Asset is in use in the basis period for the purposes of business
Qualifying plant expenditure has been incurred
Residual expenditure (Para68) / Tax written down value
Cost of dismantling and removing the asset (Para 67 C)
To quantify
The requirement to dismantle and restore the site must e pursuant to any written law/agreement
The asset which has been dismantled is not used for any business of the person or other person