TaXavvy Issue 7/2018

In this issue:

Capital Allowance for Information and Communication Technology Equipment

In the 2018 Budget, it was announced that companies would be allowed to claim capital allowance on (i) purchase of information and communication technology (ICT) equipment, and computer software packages, and (ii) expenditure relating to the development of customized software comprising consultation fee, licensing fee and incidental fee. The first proposal which has now been legislated in a new gazette order is effectively an extension of the capital allowance on ICT equipment and computer software packages given up to the year of assessment 2016, while the gazette order for the second proposal is still pending.

Revised Green Technology guidelines

MIDA has issued the revised guideline for Green Technology, which takes effect from 1 July 2018. The revision followed a review undertaken by the Forum on Harmful Tax Practices (FHTP) in 2017 under the Base Erosion Profit Shifting (BEPS) Action Plan 5: “Countering harmful tax practices more effectively, taking into account transparency and substance”.

Revised Real Property Gains Tax guidelines

The IRB has issued a revised RPGT guidelines dated 13 June 2018 (“2018 Guidelines”) which has incorporated the changes made to the RPGT Act 1976 since the last RPGT Guidelines dated 18 June 2013 (“2013 Guidelines”) was issued.

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