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Capital allowance - Coggle Diagram
Capital allowance
Classification of qualifying assets
Plant and machinery
air conditioner, elevator, oven
Heavy machinery
bulldozer, crane, ditcher
Motor vehicle
motorcycle, aircraft, ships
Qualifiying expenditure for Capital Allowance
For Motor Vehicles
Commercial Transportation = Full cost
Other than commercial transport = Restricted to RM50,000 or RM100,000
For Plant and Machinery
Capital Expenditure = Qualified
Revenue Expenditure = Not Qualified
Allowance
Initial Allowance
Claim once at the beginning
IA rate of flat 20%
Annual Allowance
Claim more than 1 time till zero of qualify cost
AA=10% for Office equipement,furniture & Fittings
AA=14% for Plant and Machinery (general)
AA=20% for Heavy machinery, motor vehicle
Disposals
Balancing Charge
Similar to gains on disposal
Sales Proceed > Residual Expenditure
Add to adjusted income
Balancing Allowances
Similar to loss on disposal
Sales Proceed < Residual Expenditure
Minus from adjusted income
Unabosrbed business loss b/f
&
Unutilised capital allowance
Unabosrbed business loss b/f
Unused adjusted loss that use to be set off against any business source
Unutilised capital allowance
to set off against adjusted income of that particular business source