Income Tax (Accelerated Capital Allowance) (Plant and Machinery)
In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following rules:
Citation and commencement
1. (1) These rules may be cited as the Income Tax (Accelerated Capital Allowance) (Plant and Machinery) Rules 2009.
(2) These Rules have effect for the year of assessment 2009 and subsequent years of assessment.
2. These Rules apply to a person—
(a) who is a resident in Malaysia; and
(b) who for the purpose of a business of his incurs qualifying plant expenditure under Schedule 3 of the Act on or after 10 March 2009 but not later than 31 December 2010.
Deeming provision relating to hire purchase agreement
3. Where the person referred to in rule 2 incurs qualifying plant expenditure under a hire purchase agreement, such person shall be taken to be the owner of the plant and machinery in respect of which the qualifying plant expenditure was incurred and that qualifying plant expenditure incurred by such person in the basis period for the year of assessment shall be taken to be the capital portion of any instalment payment (or, where there is more than one such payment, of the aggregate of those payments) made by such person under such hire purchase agreement in that period.
4. The person referred to in rule 2 qualifies for an initial allowance under paragraph 10 of Schedule 3 of the Act for the qualifying plant expenditure which shall be equal to one-fifth of the expenditure.
5. The person referred to in rule 2 qualifies for an annual allowance under paragraph 15 of Schedule 3 of the Act for the qualifying plant expenditure which shall be equal to two-fifths of the expenditure.
6. These Rules shall not apply to a person who in the period on or after 10 March 2009 but not later than 31 December 2010—
(a) has been granted any incentive under the Promotion of Investments Act 1986 [Act 327];
(b) has made a claim for reinvestment allowance under Schedule 7A of the Act;
(c) has been granted any exemption under paragraph 127(3)(b) or subsection 127(3A) of the Act; or
(d) qualifies for an allowance at a higher fraction under the Act or any rules made under section 154 of the Act.
Made 10 March 2009
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]