This Ruling is meant to assist taxpayers in ascertaining their entitlement to Reinvestment Allowance (hereinafter referred to as RA) under Schedule 7A of the Income Tax Act 1967 (hereinafter referred to as the ITA).
This Ruling provides clarification in relation to the:
(a) projects that qualify for RA;
(b) expenditure that qualifies for RA;
(c) period of eligibility for RA; and
(d) computation of RA.
Please note that there is condition that a company must be in operation for at least 36 months to be eligible to claim RA (w.e.f YA 2009).
Also, please note that there is provision to claw back RA for assets disposed off within 5 years from the date of purchase (w.e.f YA 2009).
The above Public Ruling can be viewed and downloaded from the IRB’s website at the following link: