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    SS Illustrative Example Ita

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    sharifah nurshahira sakina
    This document provides an example calculation of investment tax allowances (ITA) for a company over three years (2020-2022). It shows the qualifying capital expenditures, calculation of ITA at 60% of expenditures, the statutory business income each year, utilization of ITA to reduce taxable income, and the carry forward of any unused ITA to future years. The total ITA available over the three years amounts to RM2.7 million.

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    SS Illustrative Example Ita

    Uploaded by

    sharifah nurshahira sakina
    8 views1 page
    This document provides an example calculation of investment tax allowances (ITA) for a company over three years (2020-2022). It shows the qualifying capital expenditures, calculation of ITA at 60% of expenditures, the statutory business income each year, utilization of ITA to reduce taxable income, and the carry forward of any unused ITA to future years. The total ITA available over the three years amounts to RM2.7 million.

    Original Description:

    ILLUSTRATION

    Original Title

    SS ILLUSTRATIVE EXAMPLE ITA (1)

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    This document provides an example calculation of investment tax allowances (ITA) for a company over three years (2020-2022). It shows the qualifying capital expenditures, calculation of ITA at 60% of expenditures, the statutory business income each year, utilization of ITA to reduce taxable income, and the carry forward of any unused ITA to future years. The total ITA available over the three years amounts to RM2.7 million.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    8 views1 page

    SS Illustrative Example Ita

    Uploaded by

    sharifah nurshahira sakina
    This document provides an example calculation of investment tax allowances (ITA) for a company over three years (2020-2022). It shows the qualifying capital expenditures, calculation of ITA at 60% of expenditures, the statutory business income each year, utilization of ITA to reduce taxable income, and the carry forward of any unused ITA to future years. The total ITA available over the three years amounts to RM2.7 million.

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    © All Rights Reserved
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    SS ILLUSTRATIVE EXAMPLE ITA

    SOLUTION COMPREHENSIVE EXAMPLE: INVESTMENT TAX ALLOWANCES

    Calculate the chargeable income and exempt income account available for the year of
    assessment 2020 to 2022.

    2020 2021 2022 Total


    ITA Working
    Qualifying capital expenditure (QCE)
    Factory building 2,000 -
    Plant and machinery 900 800
    Total QCE 2,900 800
    ITA@ 60% QCE 1,740 480

    RM’000 RM’000 RM’000 RM’000


    Statutory Business Income (SBI) 2,000 3,300 4,500
    Less: ITA utilised (Refer ITA working) (1,400) (820) (480)
    SBI after exemption 600 2,480 4,020

    ITA b/f Nil 340 -


    Add: CY ITA: 60% QCE 1,740 480 480
    Total ITA Available 1,740 820 480
    Less: Utilised during the year (restricted to (1,400) (820) (480)
    70% SBI)
    ITA c/f 340 Nil Nil

    70% of SBI 1,400 2,310 3,150

    Amount credited to EIA 1,400 820 480 2,700

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