Capital Expenditure Relief

Kasih Sdn. Bhd (KSB), a Malaysian resident manufacturing company, prepares its account to 31 December 2023. On 3 December, KSB purchased a sorting machine and incurred the following expenditure:

i. Cost of machine of RM50,000

ii. Freight cost of RM5,000 to bring the machine from Japan to the factory and,

iii. Installation cost of RM20,000

What is the qualifying capital expenditure which can be claimed by KSB in respect of sorting machine?

• RM70,000

• RM55,000

• RM50,000

• RM75,000

The cost incurred for the purchase of an asset is a Qualifying Plant Expenditure if the assets function as a profit making apparatus for the business it carries on.

• True

• False

Shipping/Delivery charges can be included as part of Qualifying Plant Expenditure

• True

• False

Can the initial cost of repairs can be included as part of Qualifying Plant Expenditure?

• True

• False

For an asset to qualify as Qualifying Plant Expenditure, must it be used for the purpose of producing income?

• True

• False

ABC Sdn. Bhd., a Malaysian resident company, started as law practice as an advocate and solicitor. Incurred the following expenditure:

i. Purchased law reports and other law text-book-book for RM10,000

ii. Subscribed to law periodicals and journal RM500 per annum

iii. File storage rack RM900

How much the QPE for this case.

• RM10,000

• RM10,900

• RM11,400

• all not claimable

Expenditure amounting to RM40,000 was incurred in preparing to install machine. The annual lease rental for the machine (which cost RM500,000 if buy) is RM550,000. Choose the best answer.

• None

• RM500,000 can be claimed as allowable expenses

• RM600,000 is qualify as QPE

• RM400,000 is qualify as QPE

The generator is for transmitting telecommunication signals for the use of the food and beverages company.

• Generator that do not qualify as plant

• Generator that qualify as plant