The Rules apply to:
(a) a resident individual, in respect of capital expenditure incurred on a business in the basis period for a year of assessment (YA), for the installation of any security control equipment and monitoring equipment (other than a Global Positioning System (GPS) for vehicle tracking) in a building or permanent structure used for the purpose of that business; or
(b) a resident company incorporated under the Companies Act 1965, in respect of capital expenditure incurred on a business, in the basis period for a YA, for the installation of the following equipment:
i. Any security control equipment and monitoring equipment (other than a GPS for vehicle tracking) for a factory of the company, provided that the company is approved under the Industrial Coordination Act 1987;
ii. Any GPS for vehicle tracking for the following vehicles used for the purpose of the business of the company :a. A container lorry bearing Carrier Licence A and
b. A cargo lorry bearing Carrier Licence A or C
issued under the Commercial Vehicles Licensing Board Act 1987.
iii. Any security control equipment and monitoring equipment other than a GPS for vehicle tracking, in residential areas.
The rates of allowance allowed under the Rules are:
- Initial allowance - one-fifth of capital expenditure incurred (20%) [Rule 5];
- Annual allowance - four-fifths of capital expenditure incurred (80%) [Rule 6].
b) has been granted reinvestment allowance under Schedule 7A of the Income Tax Act 1967 (ITA);
c) has been granted any exemption under section 127 of the ITA; or
d) qualifies for an allowance at a higher fraction under the ITA or any rules made under section 154 of the ITA.
Members may read the full text of the Rules at the Attorney General Chamber's official portal under e-Federal Gazette.