The Inland Revenue Board of Malaysia (IRBM) released a public ruling (No.12/2014) on qualifying plant and machinery for claiming capital allowances on December 31, 2014.
The objective of this Public Ruling (PR) is to explain whether an asset is a qualifying plant and machinery for the purpose of claiming capital allowances in determining the statutory income from a business.
In determining the statutory income from a business source of a person, capital allowances, balancing allowances or balancing charges respectively under Schedule 3 can be deducted from or added to the adjusted income of a business source for the basis period for a year of assessment. Capital allowances are allowed to the person who incurred qualifying capital expenditure on the asset used for the purpose of his business.
This public ruling is published to replace PR No.2/2001 which relates to Computation of Initial and Annual Allowance in respect of Plant and Machinery.
