On 7 January 2015, the following Public Ruling were uploaded on IRBM website:
Public Ruling No. 11/2014 : Forest Allowances And Expenses Relating To Timer Extraction.
Public Ruling No. 12/2014 : Qualifying Plant And Machinery For Claiming Capital Allowances
The objective of the PR No. 11/2014 is to explain:
a) the type of capital expenditure that qualifies for forest allowances;
(b) the computation of forest allowances;
(c) the computation of forest charges on permanent cessation of the business of timber extraction and subsequent disposal of the forest; and
(d) tax treatment in relation to logging expenses
While the objective of the PR No. 12/2014 is Public Ruling (PR) is to explain whether an asset is a qualifying plant and machinery for the purpose of claiming capital allowances in determining the statutory income from a business.
The PR No. 12/2014 which is to replace PR No. 2/2001 which relates to Computation of Initial And Annual Allowance in respect of Plant and Machinery.
PR No. 12/2014 also stated the following items not qualified as Plant:-
1. Transportation camp and cabin
2. Payment other than cost of provision of computer software
3. Trading stock
Source: IRBM Website