Public Ruling No. 6/2022 – Accelerated Capital Allowance (“ACA”)

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The ACA is an allowable allowance for a person who has incurred qualifying expenditure (QE) on assets used for business purposes.

The ACA rate provided in the Income Tax Rules (ITR) is under the powers conferred by paragraphs 154(1)(b) and paragraphs 10 and 15 of Schedule 3 of the ITA.

The conditions that a person must fulfil to qualify for an Initial Allowance (IA) and an Annual Allowance (AA) are the same as the conditions to claim capital allowances at the normal rate (normal capital allowances) under Schedule 3 of the ITA.

In general:

  • ACA offers a higher capital allowance rate for either the initial allowance (IA) or the annual allowance (AA) than the normal rate in a year of assessment.
  • The higher rate allows a person to claim the total capital allowance within a shorter period than the normal allowance.
  • A person can choose:
    • whether to claim ACA for plant and machinery as provided under the Income Tax Rules (ITR); or
    • the normal capital allowances provided under paragraphs 10 and 15, Schedule 3 of the Income Tax Act (ITA).
  • The option made should be consistent until the capital allowance is fully absorbed.
  • However, the option for higher rates is subject to eligibility conditions specified in the ITA.
  • The option to claim normal capital allowance is subject to whether an asset is a plant and machinery eligible for claiming capital allowances under Schedule 3 of the ITA.

Public Ruling No. 6/2022 – Accelerated Capital Allowance (“ACA”)

The Public Ruling (PR) No. 6/2022 – Accelerated Capital Allowance (“ACA”) dated 22 December 2022 has been published on the website of the Inland Revenue Board of Malaysia (IRBM).

This is the third edition, and it includes updated and reorganised contents from PR No. 7/2018, dated 8 October 2018, with the updates specifically on pages 34 and 35 of PR No. 6/2022.

It comprises the following paragraphs and sets out 17 examples:

  1. Objective
  2. Relevant provisions of the law
  3. Interpretation
  4. Application of the law
  5. Introduction
  6. Qualifying expenditure
  7. Income Tax Rules
  8. Steps to claim accelerated capital allowance (ACA)
  9. Qualifying period
  10. Disposal of assets within two years
  11. Non-application
  12. Claim procedure
  13. Summary of Income Tax Rules and rates of allowances
  14. Updates and amendments
  15. Disclaimer

The purpose of this PR is to explain the tax treatment of qualifying plant and machinery and to clarify the process for claiming ACA or the prescribed rates to determine the statutory income of a business.

It is very similar to the older PR [PR No. 7/2018]. It provides clarification in relation to the following:

  • the definition of qualifying expenditure,
  • the conditions that need to be fulfilled by a person for them to qualify for ACA,
  • the qualifying period to claim ACA,
  • the tax treatment where assets are disposed of within two years, and
  • the non-application provisos.


1. Public Ruling (PR) No. 6/2022 – Accelerated Capital Allowance (“ACA”)

2. Public Ruling (PR) No. 7/2018 – Accelerated Capital Allowance (“ACA”)

5 games to keep employees of CCS & Co Plt – Chartered Accountants and Bispoint Group of Accountants connected.

We put a lot of emphasis on ensuring that our team members enjoy a balanced life outside work.

Hence, our firm’s Sports and Social Committee is responsible for actively organising an exciting variety of events, such as the Annual Dinner, Annual Trips and Inter-accounting Firm Tournament.

These events are planned so that our professionals can take some time off to relax and, more importantly, come together to strengthen their sense of community and teamwork.

This year’s Inter-Accounting Firm Tournament will be held on February 25 and 26, 2023 (Saturday and Sunday). We welcome your support!

5项活动让 CCS 特许会计师Bispoint Group of Accountants 的员工保持联系。





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