Scribd Logo
Upload

Welcome to Scribd!

  • 86 views

    Taxavvy Issue19 PDF

    Uploaded by

    Sergio Vinsennau

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Taxavvy Issue19 PDF

    Uploaded by

    Sergio Vinsennau
    86 views5 pages

    Original Title

    151008-taxavvy-issue19.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    86 views5 pages

    Taxavvy Issue19 PDF

    Uploaded by

    Sergio Vinsennau

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    8 October 2015 | Issue 19-2015

    TaXavvy
    Stay current. Be tax savvy.

    Public Ruling 6/2015 –


    Qualifying Expenditure and
    Computation of Capital
    Allowances

    www.pwc.com/my
    2

    Public Ruling 6/2015 – Qualifying Expenditure and Computation of Capital


    Allowances

    The IRB has issued Public Ruling 6/2015 – Qualifying Expenditure and Computation of Capital
    Allowances (“PR 6/2015”) dated 27 August 2015. PR 6/2015 replaces Public Ruling 2/2001 –
    Computation of Initial & Annual Allowances in Respect of Plant & Machinery.

    The following are the salient changes:

    1. Qualifying expenditure (“QE”) for motor vehicles.

    • Road tax, insurance and hire purchase interest do not qualify for capital allowance but are
    recurring expenses deductible under section 33(1) of the Income Tax Act 1967.
    • QE for motor vehicles includes the cost of basic accessories but not optional accessories.
    • “New” vehicle for the purposes of determining the amount of QE under the proviso to
    Paragraph 2 of Schedule 3, excludes reconditioned vehicle.

    2. Asset that has been used

    • Explanation is provided on the application of paragraph 2A of Schedule 3 (assets previously


    used for non-business purposes) and paragraph 2C of Schedule 3 (assets previously used for a
    business outside Malaysia).
    • Paragraph 2C shall only involve a branch or headquarters in Malaysia which brings in the
    plant or machinery from its branch or headquarters outside Malaysia. The asset must be
    owned by the same person.

    3. Withholding tax (“WHT”)

    • Payment made to non-residents for installation services or operation of plant and machinery
    which form part of the capital expenditure for plant and machinery is eligible for capital
    allowance provided the WHT has been remitted to IRB.
    • Explanation and examples are given on the tax implications on the capital allowance claim
    where WHT is not remitted and the subsequent tax adjustments when WHT is settled.

    4. Cost of dismantling and removing asset and site restoration

    • The tax treatment on capital allowance claim on such cost is explained.

    5. Foreign exchange differences

    • Foreign exchange differences arising from foreign loans taken to fund the purchase of plant
    and machinery to be used in business and the settlement of the said foreign loans will be
    regarded as QE for capital allowances purposes. The tax adjustment to be made to the QE or
    residual expenditure for foreign exchange gain or loss is explained.

    The public ruling is available on IRB’s website www.hasil.gov.my (Laws and Regulations > Public
    Ruling).

    TaXavvy Issue 19-2015


    3

    Upcoming events

    Building resilience
    PwC Budget Seminar 2015

    Kuala Lumpur

    Date: 4 November 2015

    Venue: Shangri-La Kuala Lumpur

    Shahliza Rafiq
    Contact:
    + 60(3) 2173 0728

    Email: [email protected]

    Penang

    Date: 12 November 2015

    Venue: Equatorial Penang

    Ann Yee
    Contact: Susan Ong
    +60(4) 238 9291 / +60(4) 238 9169

    [email protected]
    Email:
    [email protected]

    Johor Bahru

    Date: 12 November 2015

    Venue: Renaissance Johor Bahru

    Lee Qiu Rong


    Contact: Adeline Chong Ee Ching
    +60(7)-222 4448

    [email protected]
    Email:
    [email protected]

    For more information / to register, please visit PwC’s website at:


    http://www.pwc.com/my/en/theacademy/public-programmes.html

    TaXavvy Issue 19-2015


    4

    GST Workshop Series: Getting compliance right

    A series of one (1) day and two (2) days workshops are being offered from October to December
    2015. The workshops aim to provide participants with an understanding of GST rules and equip
    them with the knowledge to be able to deal with common GST errors and issues in complying with
    the GST law.

    For further details, please refer to http://www.pwc.com/my/en/theacademy/public-


    programmes.jhtml

    GST customised workshops

    You may already be confident in certain aspects of GST knowledge within your organisation. If you
    would like a GST course which addresses specific parts of the legislation or your business, we would
    be happy to customise a course that addresses your specific requirements.

    For further details, please contact:

    Name Email Telephone

    Naufa Murad [email protected] +60(3) 2173 5229

    Emily Lee [email protected] +60(3) 2173 0338

    TaXavvy Issue 19-2015


    Let’s talk
    Our offices Name Email Telephone

    Kuala Lumpur Jagdev Singh [email protected] +60(3) 2173 1469

    Penang / Ipoh Tony Chua [email protected] +60(4) 238 9118

    Johor Bahru Benedict Francis [email protected] +60(7) 222 4448

    Melaka Teh Wee Hong [email protected] +60(3) 2173 1595


    Au Yong [email protected] +60(6) 283 6169

    Labuan Jennifer Chang [email protected] +60(3) 2173 1828

    Our services Name Email Telephone

    Corporate Tax Compliance


    & Planning

     Consumer & Industrial Theresa Lim [email protected] +60(3) 2173 1583


    Product Services Margaret Lee [email protected] +60(3) 2173 1501

     Emerging Markets Fung Mei Lin [email protected] +60(3) 2173 1505

     Energy, Utilities & Mining Lavindran Sandragasu [email protected] +60(3) 2173 1494

     Financial Services Jennifer Chang [email protected] +60(3) 2173 1828

     Technology, InfoComm & Heather Khoo [email protected] +60(3) 2173 1636


    Entertainment

    GST / Indirect Tax Raja Kumaran [email protected] +60(3) 2173 1701


    Wan Heng Choon [email protected] +60(3) 2173 1488

    International Tax Services Frances Po [email protected] +60(3) 2173 1618


    / Mergers and Acquisition

    Transfer Pricing, Tax Jagdev Singh [email protected] +60(3) 2173 1469


    Audits & Investigations

    International Assignment Sakaya Johns Rani [email protected] +60(3) 2173 1553


    Services Hilda Liow [email protected] +60(3) 2173 1638

    Corporate Services Lee Shuk Yee [email protected] +60(3) 2173 1626

    Japanese Business Junichi Fujii [email protected] +60(3) 2173 1480


    Consulting

    pwc.com/my
    TaXavvy is a newsletter issued by PricewaterhouseCoopers Taxation Services Sdn Bhd. Whilst every care has been taken in compiling this newsletter, we
    make no representations or warranty (expressed or implied) about the accuracy, suitability, reliability or completeness of the information for any purpose.
    PricewaterhouseCoopers Taxation Services Sdn Bhd, its employees and agents accept no liability, and disclaim all responsibility, for the consequences of
    anyone acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Recipients should not act upon it
    without seeking specific professional advice tailored to your circumstances, requirements or needs.

    © 2015 PricewaterhouseCoopers Taxation Services Sdn Bhd. All rights reserved. "PricewaterhouseCoopers" and/or "PwC" refers to the individual members
    of the PricewaterhouseCoopers organisation in Malaysia, each of which is a separate and independent legal entity. Please see www.pwc.com/structure for
    further details.

    You might also like