Chia Swee How
Executive Director, Tax
If your business is investing in the construction or renovation of office buildings, shopping centres, data centres, or retail outlets, you may be eligible for capital allowance (CA) claims. Effectively claiming CA can help reduce capital expenditure costs, improve tax efficiency, and boost cash flow.
What is Capital Allowance?
In Malaysia, businesses cannot claim tax deductions for capital expenses related to buildings and renovations. However, certain assets that qualify as plant and machinery may be eligible for CA. Identifying these within complex construction and renovation projects requires specialist expertise.
Are You Claiming Your Full CA Entitlement?
Many businesses underclaim or overlook their CA due to the complexities of tax regulations and capital expenditure classifications. Accountants and tax professionals may not always have the technical knowledge to identify hidden qualifying costs embedded in building structures, electrical systems, escalators, facades, and other components.
Without proper documentation, businesses also risk compliance issues and potential tax penalties. A strategic approach ensures accurate tax fillings and maximised claims.
How BDO Can Assist
Our team of tax specialists and civil engineering experts provides a CA maximisation solution, ensuring businesses fully utilise available CA tax incentives.
Our services include:
- Detailed expenditure analysis and site visit
- Preparation of comprehensive reports
- Documentation and managing tax compliance risks
Find Out More
Learn how your business can optimise capital allowance claims and improve financial efficiency. Access our brochure to explore BDO’s expertise and tailored solutions.