inland revenue board of malaysia - Malaysian Institute of Accountants

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ACCELERATE CAPITALALLOWANCEINLAND REVENUE BOARD OF MALAYSIAPublic Ruling No. 4/2013Date Of Issue: 15 April 20138.1.2 A company that fulfils the above criteria is eligible to claim ACA of20% for initial allowance (IA) and 40% for annual allowance (AA).8.1.3 A company is not eligible for ACA under the above mentionedRules for the period during which the company -(a)Has been given incentives except for deduction for promotionof exports under the PIA Act 1986, or(b) Has claimed RA under Schedule 7A, ITA 1967.8.2 Rules of the Income Tax (Accelerated Capital Allowances)(Reinvestment of Eligible Projects) 2000 [P.U.(A) 506/2000]8.2.1 These Rules are effective from YA 2001 and applies in respect ofqualifying plant expenditure incurred on the provision of plant ormachinery for the purpose of a qualifying project in respect of –(a)(b)(c)A promoted activityA promoted product, orAn agricultural project, andused for the purposes of his business.8.2.2 ACA is given in the form of -(a) IA at 40%(b) AA at 20%8.2.3 For the purposes of these Rules –(a)(b)(c)“Promoted activity or promoted product” means any activity orproduct promoted under section 4 of the PIA 1986.“Agricultural project” has the meaning as defined underparagraph 8(c) in respect of activities listed under paragraph9(aa) to 9(ff) of Schedule 7A of the ITA 1967.“Qualifying projects" has the meaning as defined underparagraph 8 (a) of Schedule 7A of the ITA 1967.Page 7 of 34
ACCELERATE CAPITALALLOWANCEINLAND REVENUE BOARD OF MALAYSIAPublic Ruling No. 4/2013Date Of Issue: 15 April 20138.2.4 These Rules shall not apply to the company within these periods -(a) Was given RA under Schedule 7A of the ITA 1967.(b)(c)Has been granted pioneer status or investment tax allowanceunder the PIA 1986 in respect of a promoted activity orpromoted product.Failed to submit a copy of the letter from the MalaysianIndustrial Development Authority confirming the promotedactivity or promoted product undertaken in respect of aqualifying project for a year of assessment.8.3 Income Tax (Accelerated Capital Allowance) (Conservation of Energy)Rules 2003 [P.U. (A) 349/2003]8.3.1 With effect from year of assessment 2003, ACA is given to acompany which has incurred capital expenditure in the basis periodfor a year assessment on the -(a)(b)Provision of plant or machinery as certified by the Ministry ofEnergy, Telecommunications and Multimedia, orMachinery used exclusively for the conservation of energy ofits business.8.3.2 ACA is fully given within one year with IA of 40% and AA of 60%.8.3.3 If the company has been granted an AA under the Income Tax(Accelerated Capital Allowance) (Conservation of Energy) Rules2001 [P.U.(A) 82/2001], AA for the year of assessment 2003 is theamount of qualifying plant expenditure less the amount of theallowance that has been permitted under P.U.(A) 82/2001.Example 1In the year of assessment 2001, A Sdn Bhd has incurred QE for theprovision of plant and machinery for the purpose of conservation ofenergy in the its business worth RM120,000. Company has claimedACA on QE incurred.Year Of Assessment 2001: [P.U.(A) 82/2001]RMQualifying expenditure 120,000Deduct:IA (120,000 x 40%) 48,000AA (120,000 x 20%) 24,000 72,000Residual expenditure 48,000Page 8 of 34
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inland revenue board of malaysia - Malaysian Institute of Accountants

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