When I studied Tax more than 15-years ago, in the first year, there should be Initial Allowance and also Capital Allowance. Rate depends on type of machinery purchased. For Office equipment, the CA should be 20% and AA at 10%.

Refer here, TLDR for me.

http://www.kpmg.com.my/kpmg/publications/t.../a0053sc003.htm

As for your own Depreciation, if the AA is 10%, then u should depreciate over 10-yrs.

But, why Buy when u can rent?

Yes, there may be some taxes in form of Balancing Charge / Balancing Allowances if u have claimed Capital Allowance previously and dispose of the Asset. Refer to the section called Balancing Charge / Balancing Allowances in the link above


Btw, to correct my earlier, post Initial Allowane (IA) at 20%, Annual Allowance (AA) at 10%.

Exampple on how to calculate Balancing Charge / Balancing Allowances

http://www.iras.gov.sg/irasHome/page01.aspx?id=9254

http://ctim.org.my/PDF/Technical/Minutes%2...%20Part%20C.pdf

http://www.christopherheng.com/index.php?mid=1783

http://www.kpmg.com.my/kpmg/publications/tax/tm/chapter3.pdf



This post has been edited by cfa28: Mar 17 2014, 02:01 PM