Malaysia Tax Agency Issues General Ruling on Reinvestment Allowance for Manufacturing Activities

The Malaysian Inland Revenue Board Nov. 6 issued General Ruling No. 10/2020, explaining the qualifications of manufacturing companies to claim reinvestment allowances (EPS). The ruling clarifies the: 1) eligibility requirements to claim the EPS for a resident company in Malaysia; 2) 36-month duration of a resident company for EPS eligibility; 3) capital expenditure requirements for a project to qualify for EPS; 4) eligible period of 15 consecutive years for a company to claim EPS; 5) 70 percent EPS deductibility from qualified business income; 6) special tax treatment during the transition period; and 7) EPS claims procedure. [Malaysia, Inland Revenue Board, ...