Valentine Sdn. Bhd. was incorporated on 1 October 2020 and made up its accounts annually to 31 December. The business commenced on 1 January 2021 and incurred the following CAPEX during Year-End 2021.

Date	Expenditure	RM’000	Annual allowance rate (%)
	Bulldozer		20
15/12/20	deposit	100
1/3/21	full payment	400
	Forklift (Hire Purchase)		14
10/1/21	Cost	150
15/1/21	down payment	15
	Principal	27
	Interest	9
	Lorry		20
1/3/21	second-hand vehicle	95k
1/10/20	Computer	10k	40
1/1/21	Office Equipment
	Deposit	8k	10
	full payment	40k

The computer was found to be unsuitable after a year of usage and was disposed of immediately for RM5,000.

all in Malaysia

Required:

1. Calculate the capital allowance for Valentine Sdn. Bhd. for the Year Assessment 2021.

2. Explain what is meant by the “scope of income tax” with relevance to the Income Tax Act 1967.

3. What is chargeable income in Malaysia and how is it calculated?

Answer rating: 100% (QA)

Capital Allowance for Valentine Sdn Bhd 1 Bulldozer The bulldozer was purchased on 15 December 2020 ... View the full answer