PR 1/2008 Special Allowances for Small Value Assets

Small value asset
- qualifying small value assets which cost not more than RM1,000 used for business purpose, not include assets with life span of not more than 2 years

1. Special allowances for small value assets
- w.e.f Ya2006, under new Paragraph 19A, Schedule 3 of ITA
- Special allowances, 100% claimed in the year assets is acquired
- Claim for special allowances is restricted to a maximum amount of RM10,000 for each YA (AA:100%)
- Exceeding amount is eligible for normal capital allowances

2. Hire purchase of small value assets
- Not applicable to small value assets acquired through hire purchase

3. Disposal of small value assets
- If the assets disposed off and the disposal value > residual expenditure then the balancing charge have to added back to tax computation

Effective Ya2006 and subsequent years of assessment

Source: summarised from
http://www.hasil.gov.my/pdf/pdfam/PR1_2008.pdf