HOW TO MAXIMISE THE CLAIM OF CAPITAL ALLOWANCE ON PRIVATE MOTOR VEHCILE

I have been asked a number of times by client about "what value of car should I buy to maximise my capital allowance claim", here are some guides:-
Restriction of private motor vehicle capital allowance is as follows:-

Type of motor vehicle	Limit
Use motor vehicle	RM50,000
New motor vehicle cost less than RM150,000	RM100,000
New motor vehicle cost more than RM150,000	RM50,000

Motor vehicles which are licensed for commercial transportation of goods or passengers such as lorry, truck & van, are not subject to the above restriction.

Tax tip:To maximise your allowance, if possible, acquire new motor vehicle with the cost less than RM150,000.

For employees use of company motor vehicle after office hour, the motor vehicle provided by the Company will be assessed as Benefit In Kind (BIK) as part of the employment remuneration. The benefits to be assessed will be the value of the private use of the car provided based on a calculation table provided by Inland Revenue Board (IRB). (Detail can be refer to Public Ruling 2/2004)