Purchase of Personal Computer under Paragraph 46(1)(J) Income Tax Act 1967

Definition of Computer -- IRB Announcement

The IRB has uploaded on its website on 31 July 2013 that the personal deductions on expenses incurred in the purchase of personal computer under Section 46(1)(j) Income Tax Act 1967 shall be confined to the purchase of the following not used for the purpose of a business:

· Desktop computer;

· Laptop computer;

· Notebook; and

· Ultrabook.

The tax deduction will not cover expenses incurred in acquiring gadgets that may perform functions similar to a computer, for example, tablets, smartphones, etc.

The above treatment is effective from Year of Assessment (YA) 2013, As a concession, a claim for deduction for purchase of computer other than those indicated above, made prior to YA 2013 will not be withdrawn.

Members may view this Announcement at the websites of the Institute and the IRB.