Income Tax (Industrial Building Allowance)(Building under Privatisation Project and Private Financing Initiatives) Rules 2010 [P.U.(A) 119/2010]

The Rules stipulate that a building constructed under a privatisation project and private financing initiatives by the Privatization/PFI Committee, Public Private Partnership Unit, Prime Minister’s Department; and pursuant to an agreement entered into between a person and the Government of Malaysia or statutory body on a build-lease-maintain-transfer basis (BLMT Agreement) and for which no consideration has been paid by the Government of Malaysia or statutory body to that person, shall be treated as an industrial building with effect from the year of assessment 2009. 

The initial allowance and annual allowance of the industrial building shall be 10% and 6% respectively.  The balance of residual expenditure shall be reduced by the amount of any compensation received by such person; and the disposal value of the asset shall be taken to be zero when the BLMT agreement expires.