Agriculture Allowance

Are agriculture companies entitled to any tax incentives?

01Agriculture allowance

A taxpayer who incurred Qualifying Agriculture Expenditure is entitled to claim Agriculture Allowance.

02Qualifying Agriculture Expenditure

1. Clearing and preparation of land

2. New planting (exclude replanting) either:

a) new crop of any product

b) replace old crops with a crop of a different type

3. Construction on a farm of a road or bridge

4. Construction on a farm of a building either:

a) used in working of farm

b) welfare of persons

c) living accommodation

5. Schedule of Agriculture Allowance

03Non-Qualifying Agriculture Expenditure

1. Cost of land

2. Cost of plant and machinery used in the farm

04Agriculture Charges (Disposal)

1. If disposal within 5 years: agriculture charge equal = allowances claimed in prior years

2. If disposal made after 5 years: no agriculture charge will be made

05Source

Reference: Public Ruling No. 1/2016 Agriculture Allowance

https://phl.hasil.gov.my/pdf/pdfam/PR_01_2016.pdf

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