Tax updates: Capital Allowance

Qualifying Expenditure (QE) for a vehicle that is not licensed for transportation of goods or passengers is as below:

• RM100,000 for car costing below RM150,000. (Vehicle must be new); and
• RM50,000 for car costing above RM150,000

Commercial vehicles such as lorry or van are given full capital allowances. 

Small value assets is an assets which :

• Cost of assets not more than RM1,300; and
  
• Not include assets that have an expected life span of not more than 2 years.

 The capital allowances for small value assets is restricted to a maximum amount of RM13,000 for each year of assessment 

​Types and rate of capital allowance are as follows :

Types of allowance	Types of assets	Rates (%)
Initial allowance	All types of assets	20
Annual allowance	Motor vehicles and heavy machinery	20
Annual allowance	Plant and machinery	14
Annual allowance	​Office Equipment, Furniture and Fittings	10
Annual allowance	Computer	40
Special allowance	Small value assets	80

If you need further clarification or information, please us.
 
 
Source:

• http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=2&bt_unit=5000&bt_sequ=12&bt_lgv=2
• Public Ruling No. 10/2014 - Special Allowances for Small Value Assets
• Public Ruling No. 12/2014 - Qualifying Plant and Machinery for claiming Capital Allowances
• Public Ruling No. 6/2015 - Qualifying Expenditure and Computation of Capital Allowances
• Public Ruling No. 7/2018 -  Accelerated Capital Allowance
• Photo : pexels