Day: June 15, 2021

  • Deduction for Expenses in relation to the Cost of Personal Protective Equipment

    Deduction for Expenses in relation to the Cost of Personal Protective Equipment

    34.-Income-Tax-Deduction-for-Expenses-in-relation-toDownload
    34.1-P.UA-269Download

    1. Tax deductions for employers on the cost of personal protective equipment (PPE) are offered by the Income Tax (Deduction for Expenses in Relation to the Cost of Personal Protective Equipment) Rules 2021, which are effective from YA 2020 and define personal protective equipment (PPE) as “expenditure incurred by the employer for the purpose of prevention and protection of its workers from COVID-19.” 2. From the first day of March 2020, the deduction for spending on personal protective equipment (PPE) will be applied against adjusted income. 3. However, a deduction will not be given in which:

    • the employer has claimed capital allowances under the Income Tax Act on the cost of such personal protective equipment, or
    • the employer has claimed ACA under the Income Tax (Accelerated Capital Allowance) (Machinery and Equipment. Including Information and Communication Technology Equipment) Rules 2021 on the cost of such personal protective equipment.

    1. 2020年6月5日下午的直播，首相丹斯里慕尤丁在公布经济复苏短期计划时说：

    👉 政府将为公司提供各种有关防疫措施的税务回扣，其中业者作为商业用途购买的个人防护装备（PPE) ，或进行新冠肺炎检验的费用，可获扣税。

    2. 2021年6月15日，政府在宪报上，颁布了 2021年所得税（针对个人防护装备费用的扣税）细则 [Income Tax (Deduction for Expenses in relation to the Cost of Personal Protective Equipment) Rules 2021]

    3. 这个细则主要说的是：

    👉 雇主所购买的个人防护装备（PPE)，可以直接扣税。

    4. 大家都知道，设备一般属于公司的资产，公司是不能直接拿相关的费用来扣税，都是需要通过资本津贴 [Capital Allowance] 的形式，分几年来慢慢扣税的。

    5. 因此，这个细则让公司加快扣税的速度

    6. 当然，大前提还是，公司要有赚钱，有 Adjusted Income 才能达到最大的效益

    7. 然而，如果公司已经选择申索资本津贴 [claim Capital Allowance] 的话，此细则就不适用

    [意思就是说，只能慢慢 Claim Capital Allowance 而不是能从 Adjusted Income 直接扣税了]

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  • Accelerated Capital Allowance (Machinery and Equipment including ICT Equipment)

    Accelerated Capital Allowance (Machinery and Equipment including ICT Equipment)

    35.-Income-Tax-Accelerated-Capital-Allowance-Machinery-and-Equipment-including-Information-and-Communication-Technology-Equipment-Rules-2021Download
    35.-P.U-A-268Download

    1) IN exercise of the powers conferred by paragraph 154(1)(b) of, and paragraphs 10 and 15 of Schedule 3 to, the Income Tax Act 1967 [Act 53], the Minister makes these Rules, which were gazetted on 15 June 2021.

    2) These Rules shall have effect from the year of assessment 2020.。

    3) These rules provide that qualifying plant expenditure incurred by a person in the basis period for a year of assessment from 1 March 2020 until 31 December 2021 and used for the purpose of his business, capital expenditure incurred in relation to provision of machinery and equipment including information and communication technology equipment except motor vehicle qualify for an initial allowance of 20% and an annual allowance of 40%.

    4) As specified in the Income Tax (Accelerated Capital Allowance) (Machinery and Equipment, Including Information and Communication Technology Equipment) Rules 2021, capital portions of instalment payments made during the period on machinery and equipment purchased under hire purchase arrangements would be eligible for the ACA.

    5) Anyone who has incurred plant expenditure and has already claimed ACA under the Income Tax (Accelerated Capital Allowance) (Automation Equipment) Rules 2017 or exemption under the Income Tax (Exemption No 8) Order 2017 would not be eligible to claim. 1. 大家应该知道，公司买 Assets，只要符合 Plant 的定义，都可以扣税

    2. 但是，上述 （1）说到的扣税，不是直接从 Profit 扣，而是通过所谓的资本津贴 [Capital Allowance] 分几年慢慢 Claim

    3. 所谓的资本津贴 [Capital Allowance]，又再细分为 Initial Allowance 及 Annual Allowance

    4. 一般上，Initial Allowance 都是 20%，而 Annual Allowance 则根据不同资产的类型，有着不同的 Rates

    5. 2021年6月15日，政府在宪报上，颁布了 2021年所得税（加速资本津贴）（机械和设备，包括信息和通信技术设备）细则 [Income Tax (Accelerated Capital Allowance) (Machinery and Equipment including Information and Communication Technology Equipment) Rules 2021]

    5. 这个细则主要说的是：

    👉 在 1.3.2020 – 31.12.2021 这段时间购买的资产 [Assets]

    👉 除了车辆 [Motor Vehicles]

    👉 将享有加速资本津贴

    6. 符合上述 （5）资格的这些资产，将享有： 👉 Initial Allowance – 20% ；及

    👉 Annual Allowance – 40%

    7. 在这种情况下，两年就完全 Claim 完所有的 Capital Allowance

    8. Hire purchase 方式买的资产，只有本金的支付才享有资本津贴

    9. 细则也为 信息和通信技术设备 (Information and Communication Technology Equipment) 给与列明

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