CAPITAL ALLOWANCE | Capital Allowance Calculation Structure
When a company purchases capital assets for business use, such as:
Company Vehicles | Machinery | Computers | Office Equipment | Furniture | Production Equipment
the expenditure generally cannot simply be deducted in full as an ordinary Business Expense in the year of purchase.
For tax purposes, it is necessary to determine whether the expenditure qualifies as:
Qualifying Expenditure (QE)
If the relevant conditions are met, the company may claim tax deductions progressively through:
Capital Allowance (CA) 1. Basic Calculation Formula
Capital Allowance generally consists of:
Initial Allowance (IA)
and
Annual Allowance (AA)
Basic formula:
Qualifying Expenditure (QE) × IA Rate = Initial Allowance
Qualifying Expenditure (QE) × AA Rate = Annual Allowance
Therefore:
First-Year Capital Allowance
IA + AA
For subsequent years, the company would generally continue claiming:
AA
until the relevant Qualifying Expenditure has been fully relieved, or until the asset is disposed of or another event triggers further tax treatment. 2. Common Capital Allowance

Asset Category
Motor Vehicle / Heavy Machinery
Plant & Machinery
Office Equipment / Furniture / Fittings
Computer / ICT Equipment

The exact classification of an asset, and whether any Accelerated Capital Allowance (ACA) or other special measure applies for the relevant Year of Assessment, should be confirmed by the Tax Agent. 3. Example | Company Purchases Machinery for RM100,000
Assume:
Machine Cost = RM100,000
Qualifying Expenditure:
RM100,000
For ordinary Plant & Machinery:
IA = 20%
RM100,000 × 20%
= RM20,000
AA = 14%
RM100,000 × 14%
= RM14,000
First-Year Capital Allowance
RM20,000 + RM14,000
= RM34,000
Remaining balance:
RM100,000 − RM34,000
= RM66,000
Second Year
Annual Allowance:
RM14,000
Remaining balance:
RM66,000 − RM14,000
= RM52,000
Third Year
Annual Allowance:
RM14,000
Remaining balance:
RM38,000
The claim continues in accordance with the applicable rules until the relevant Qualifying Expenditure has been fully relieved. 4. How Does Capital Allowance Reduce Corporate Tax?
Assume the company has:
Adjusted Business Income = RM300,000
Capital Allowance for the year:
RM34,000
The basic concept is:
Adjusted Income RM300,000
less:
Capital Allowance RM34,000
=
Statutory Income RM266,000
Other applicable tax adjustments are then taken into account before determining the company’s final Chargeable Income.
Therefore:
Capital Allowance does not mean the government refunds RM34,000 to the company.
Instead:
The RM34,000 is used to reduce the relevant business income for tax computation purposes. 5. Company Purchase of a Motor Vehicle
Assume the company purchases a qualifying commercial vehicle used for business:
RM200,000
Assume the full RM200,000 qualifies as Qualifying Expenditure.
For the relevant motor vehicle category:
IA 20%
RM200,000 × 20%
= RM40,000
AA 20%
RM200,000 × 20%
= RM40,000
First-Year Capital Allowance
RM80,000
Second Year
AA:
RM40,000
Cumulative allowance:
RM120,000
Third Year
AA:
RM40,000
Cumulative allowance:
RM160,000
Fourth Year
Remaining balance:
RM40,000
The total Capital Allowance eventually reaches:
RM200,000
subject to the applicable rules. 6. Passenger Cars Are Subject to Cost Restrictions
This is very important.
Not every company motor vehicle qualifies for Capital Allowance based on its full purchase price.
For a vehicle that is not licensed for the commercial transportation of passengers or goods, the Qualifying Expenditure is generally subject to a restriction.
A commonly applied rule is:
New Vehicle + Total Cost Not Exceeding RM150,000
Maximum Qualifying Expenditure:
RM100,000
If the relevant conditions are not satisfied, for example where the vehicle is second-hand, the general maximum may instead be:
RM50,000 7. Example | RM140,000 New Passenger Car
Assume:
Car Price = RM140,000
The vehicle is new and satisfies the conditions for the RM100,000 QE limit.
Capital Allowance is therefore not calculated on:
RM140,000
but on:
Qualifying Expenditure = RM100,000
First Year
IA 20%:
RM20,000
AA 20%:
RM20,000
First-Year CA:
RM40,000
Second Year
RM20,000
Third Year
RM20,000
Fourth Year
RM20,000
Total Capital Allowance:
RM100,000
Although the company paid:
RM140,000
the tax Qualifying Expenditure is restricted to:
RM100,000 8. Example | RM300,000 Passenger Car
Assume the company purchases a passenger car for:
RM300,000
Because the vehicle cost exceeds RM150,000, it does not qualify for the RM100,000 QE ceiling under the relevant general condition.
Under the general restriction:
Qualifying Expenditure = RM50,000
Therefore:
IA 20%
RM10,000
AA 20%
RM10,000
First-Year Capital Allowance
RM20,000
Subsequent Annual Allowance claims continue according to the applicable rules.
Therefore:
Purchasing a RM300,000 luxury car does not mean the company can claim Capital Allowance on the full RM300,000. 9. Commercial Vehicles
Where the vehicle genuinely qualifies and is licensed for commercial transportation purposes, such as:
Lorry
Truck
Commercial Van
Other Qualifying Commercial Vehicles
the QE restriction applicable to ordinary passenger cars may not apply in the same manner.
Before purchasing the vehicle, the company should confirm:
Vehicle Type + Registration / Licensing + Business Use
rather than relying solely on the model or appearance of the vehicle. 10. Office Furniture / Equipment
Assume the company purchases:
Office Furniture = RM50,000
and the applicable rates are:
IA 20% + AA 10%
IA
RM50,000 × 20%
= RM10,000
AA
RM50,000 × 10%
= RM5,000
First-Year CA
RM15,000
Remaining balance:
RM35,000
Further Annual Allowance claims continue in accordance with the applicable rules. 11. Accounting Depreciation Is Different from Tax Capital Allowance
This is one of the most common areas of confusion.
Assume:
Machine Cost = RM100,000
The company’s accounting policy records:
Depreciation = RM20,000
For tax purposes, however:
RM20,000 Accounting Depreciation ≠ Automatic Tax Deduction
A Tax Computation would generally involve:
Accounting Profit

• Add Back Depreciation

− Capital Allowance
=
Further calculation of the company’s taxable / statutory income.
Therefore:
Accounting Depreciation
is an accounting treatment.
Capital Allowance
is an income tax treatment.
They should not be treated as the same thing. 12. When Can Capital Allowance Be Claimed?
Several core conditions generally need to be satisfied:
① The company is carrying on a business
② The company owns the relevant asset
③ The asset is a capital asset used for the company’s business
④ The asset has been put to use in the business
⑤ The expenditure qualifies as Qualifying Expenditure
Therefore:
Buying an asset ≠ Automatic entitlement to Capital Allowance
The company must still consider:
Ownership + Business Use + Asset Classification + Timing 13. What Documents Should Be Retained?
When purchasing capital assets, the company should retain:

• Supplier Invoice
• Purchase Agreement / Sales Order
• Company Bank Payment
• Asset Registration / Ownership Documents
• Asset Register
• Business Usage Evidence

For motor vehicles, retain:
Vehicle Registration Card / Grant + Insurance + Company Usage Records
For machinery, retain:
Machine Invoice + Installation Records + Location + Commissioning / Usage Records 14. Complete Capital Allowance Calculation Process
STEP 1
Company purchases an asset
↓
STEP 2
Determine whether the expenditure is:
Revenue Expense OR Capital Expenditure
↓
STEP 3
Determine:
Qualifying Expenditure (QE)
↓
STEP 4
Classify the asset:
Motor Vehicle / Heavy Machinery
Plant & Machinery
Office Equipment / Furniture
ICT / Computer
↓
STEP 5
Determine:
IA Rate + AA Rate
↓
STEP 6
Calculate:
Initial Allowance + Annual Allowance
↓
STEP 7
Deduct Capital Allowance from the relevant:
Business Adjusted Income
↓
STEP 8
Determine:
Statutory Income
↓
STEP 9
Continue with:
Tax Computation
↓
STEP 10
Determine final:
Chargeable Income → Corporate Income Tax The Simplest Way to Understand It
Ordinary Business Expenses
Examples:
Salary / Rental / Advertising
If qualifying:
→ Generally deducted as ordinary business expenses
Long-Term Capital Assets
Examples:
Car / Machine / Computer / Furniture
Generally:
→ Capital Expenditure
↓
→ Capital Allowance
↓
→ Tax deduction obtained progressively Core Concept
Asset Purchase Price
↓
Determine Qualifying Expenditure
↓
Initial Allowance + Annual Allowance
↓
Capital Allowance
↓
Reduce Relevant Business Statutory Income
↓
Reduce the Company’s Taxable Base
Capital Allowance can therefore be understood as:
A tax depreciation mechanism under the Malaysian income tax system for qualifying business capital assets, which generally replaces accounting depreciation as the relevant tax deduction mechanism.
Important Reminder: Different asset types, vehicle classifications, industries, and Years of Assessment may be subject to different Capital Allowance or Accelerated Capital Allowance rules. The final claim should be determined based on the nature of the asset, purchase date, business use, and the tax rules effective for the relevant Year of Assessment.


马来西亚 Sdn. Bhd.
CAPITAL ALLOWANCE｜资本津贴计算架构
当公司购买用于营业的资本资产，例如：

公司车辆｜机器｜电脑｜办公设备｜家具｜生产设备
这些支出通常不能简单地在购买当年全部作为普通 Business Expense 扣税。

税务计算时，应进一步判断是否属于：
Qualifying Expenditure（QE｜合资格资本支出）

符合条件后，公司可以通过：
Capital Allowance（CA｜资本津贴）
逐步从公司的营业收入中获得税务扣除。
________________________________________
一、基本计算公式
Capital Allowance 主要分为：
Initial Allowance（IA）
首次资本津贴

Annual Allowance（AA）
年度资本津贴

基本公式：
Qualifying Expenditure（QE） × IA Rate
= Initial Allowance
Qualifying Expenditure（QE） × AA Rate
= Annual Allowance

因此：
第一年 Capital Allowance
IA + AA
后续年度通常继续：
AA
直到相关 Qualifying Expenditure 被完全获得资本津贴，或资产发生出售等需要进行进一步税务处理的情况。

二、常见资产
Motor Vehicle / Heavy Machinery
Plant & Machinery
Office Equipment / Furniture / Fittings
Computer / ICT Equipment

具体资产分类及当年度是否存在 Accelerated Capital Allowance（ACA）等特别措施，应由 Tax Agent 按有关课税年度确认。

三、例子｜公司购买机器 RM100,000
假设：
Machine Cost = RM100,000
Qualifying Expenditure：
RM100,000
普通 Plant & Machinery：
IA = 20%
RM100,000 × 20%
= RM20,000
AA = 14%
RM100,000 × 14%
= RM14,000
第一年 Capital Allowance
RM20,000 + RM14,000
= RM34,000
剩余：
RM100,000 − RM34,000
= RM66,000
________________________________________
第二年
Annual Allowance：
RM14,000
剩余：
RM66,000 − RM14,000
= RM52,000
________________________________________
第三年
Annual Allowance：
RM14,000
剩余：
RM38,000
继续按照适用规则计算，直到相关 Qualifying Expenditure 获得完整的 Capital Allowance。
________________________________________
四、Capital Allowance 如何降低公司税？
假设公司：
Adjusted Business Income
RM300,000
当年度 Capital Allowance：
RM34,000

那么基本概念：
Adjusted Income RM300,000
减：
Capital Allowance RM34,000
=
Statutory Income RM266,000
再经过其他适用的税务计算，最终确定公司的 Chargeable Income。
所以：
Capital Allowance 不是政府直接退 RM34,000 给公司。
而是：
RM34,000 用来降低公司计算所得税时的相关营业收入。
________________________________________
五、公司购买 Motor Vehicle
假设公司购买一辆符合相关条件、用于公司业务的商业车辆：
RM200,000
假设完整 RM200,000 均属于 Qualifying Expenditure。
Motor Vehicle：
IA 20%
RM200,000 × 20%
= RM40,000
AA 20%
RM200,000 × 20%
= RM40,000
第一年 Capital Allowance
RM80,000
________________________________________
第二年
AA：
RM40,000
累计：
RM120,000
________________________________________
第三年
AA：
RM40,000
累计：
RM160,000
________________________________________
第四年
剩余：
RM40,000
最终获得完整：
RM200,000 Capital Allowance
________________________________________
六、但是 Passenger Car 有成本限制
这一点非常重要。
不是所有公司购买的汽车，都能够按照汽车实际购买价格计算 Capital Allowance。
对于并非持牌用于商业载客或载货的车辆，Qualifying Expenditure 通常受到限制。

一般规则：
新车 + 总成本不超过 RM150,000
Qualifying Expenditure 最高：
RM100,000
如果不符合有关条件，例如车辆属于二手车，通常：
QE 最高限制为 RM50,000
________________________________________
七、例子｜公司购买 RM140,000 新 Passenger Car
假设：
Car Price = RM140,000
车辆是新车，并符合 RM100,000 QE 上限条件。

因此不是按照：
RM140,000
计算 Capital Allowance。
而是：
Qualifying Expenditure = RM100,000

第一年：
IA 20% = RM20,000
AA 20% = RM20,000
First Year CA = RM40,000

第二年：
RM20,000

第三年：
RM20,000

第四年：
RM20,000

最终：
Total Capital Allowance = RM100,000
虽然公司实际买车：
RM140,000

但税务上的 Qualifying Expenditure 受到：
RM100,000
限制。
________________________________________
八、例子｜购买 RM300,000 Passenger Car
假设公司购买：
RM300,000
由于车辆成本超过 RM150,000，因此不符合 RM100,000 QE 上限的有关条件。

在一般限制规则下：
Qualifying Expenditure = RM50,000

那么：
IA 20% = RM10,000
AA 20% = RM10,000

第一年：
Capital Allowance = RM20,000
后续年度继续按照适用 AA 计算。

因此：
公司买 RM300,000 的豪华车，并不代表可以用 RM300,000 全额计算 Capital Allowance。
________________________________________
九、Commercial Vehicle 商用车辆
如果属于真正符合相关条件并持牌用于商业运输的车辆，例如：
Lorry
Truck
Commercial Van
其他符合条件的 Commercial Vehicle
则与普通 Passenger Car 的 QE 限制规则不同。

因此公司购买车辆前，应先确认：
Vehicle Type + Registration / Licensing + Business Usage
而不是单纯根据车型名称判断。
________________________________________
十、Office Furniture / Equipment
例如公司购买：
Office Furniture RM50,000

假设属于：
IA 20% + AA 10%
第一年：
IA：
RM50,000 × 20%
= RM10,000
AA：
RM50,000 × 10%
= RM5,000
First Year CA = RM15,000
剩余：
RM35,000
之后继续按照适用 AA 计算。
________________________________________
十一、会计 Depreciation 与 Tax Capital Allowance 不一样
这是客户最容易混淆的地方。
例如：
Machine Cost：
RM100,000

会计按照公司会计政策计算：
Depreciation RM20,000

但是报税时：
不能简单认为：
RM20,000 Depreciation = Tax Deduction

Tax Computation 通常需要：
Accounting Profit
•
Add Back Depreciation
−
Capital Allowance
=
进一步计算公司的 Taxable / Statutory Income。

因此：
Accounting Depreciation
属于会计处理。
Capital Allowance
属于所得税处理。
两者不能混为一谈。
________________________________________
十二、什么时候才能 Claim Capital Allowance？
一般需要满足几个核心条件：
① 公司正在经营 Business
② 公司拥有相关资产
③ 资产属于用于公司业务的资本资产
④ 资产已经用于公司的营业活动
⑤ 支出属于符合条件的 Qualifying Expenditure

因此：
买了资产 ≠ 自动可以 Claim CA
还需要看：
Ownership + Business Use + Asset Classification + Timing
________________________________________
十三、需要保存什么文件？
公司购买资本资产时，应保存：
Supplier Invoice
•
Purchase Agreement / Sales Order
•
Company Bank Payment
•
Asset Registration / Ownership Documents
•
Asset Register
•
Business Usage Evidence
例如汽车还应保存：
Vehicle Registration Card / Grant + Insurance + Company Usage Records
机器则建议保存：
Machine Invoice + Installation + Location + Commissioning / Usage Record
________________________________________
十四、完整 Capital Allowance 计算流程
STEP 1
公司购买资产
↓
STEP 2
判断：
Revenue Expense OR Capital Expenditure？
↓
STEP 3
确认：
Qualifying Expenditure（QE）
↓
STEP 4
确定资产类别：
Motor Vehicle / Heavy Machinery
Plant & Machinery
Office Equipment / Furniture
ICT / Computer
↓
STEP 5
确定：
IA Rate + AA Rate
↓
STEP 6
计算：
Initial Allowance
•
Annual Allowance
↓
STEP 7
从相关 Business Adjusted Income 中扣除 Capital Allowance
↓
STEP 8
计算：
Statutory Income
↓
STEP 9
继续进行：
Tax Computation
↓
STEP 10
最终确定：
Chargeable Income → Corporate Income Tax
________________________________________
最简单的理解
普通营业费用
例如：
Salary / Rental / Advertising
符合条件：
→ 通常直接作为营业费用扣除
但是：
购买长期使用的资产
例如：
Car / Machine / Computer / Furniture
通常：
→ Capital Expenditure
↓
→ Capital Allowance
↓
→ 分阶段获得税务扣除
________________________________________
核心概念
Asset Purchase Price
↓
确定 Qualifying Expenditure
↓
Initial Allowance + Annual Allowance
↓
Capital Allowance
↓
降低相关 Business Statutory Income
↓
降低公司的应税基础

因此，Capital Allowance 可以理解为：
马来西亚所得税制度给予符合条件商业资本资产的税务折旧机制，用来取代会计 Depreciation 直接作为所得税扣除。

重要提醒： 不同资产、车辆类型、行业以及特定课税年度可能存在不同的 Capital Allowance / Accelerated Capital Allowance 规则。正式报税时，应根据资产性质、购买日期及当年度有效税务规定确定最终可申报金额。