Thursday, December 14, 2017

Public Ruling No. 7/2017 : DISPOSAL OF PLANT OR MACHINERY PART I – OTHER THAN CONTROLLED SALES

The Inland Revenue Board of Malaysia has issued Public Ruling No. 7/2017 : Disposal of plant or machinery Part I – Other than Controlled Sales on 12 December 2017.

The new public ruling explains the tax treatment in relation to the disposal of plant and machinery which is not subject to the controlled sales.

Disposal value = Market value OR Net proceeds of the sale, whichever is the greater.

Paragraph 8 of the PR stated that the disposal of assets at market value does not apply to:-
1)Disposal of asset to the Government, State Government or a local authority
2)Disposal of asset by way of gift
http://lampiran2.hasil.gov.my/pdf/pdfam/PR_7_2017.pdf

Source : IRB website