top of page
Search
  • Writer's pictureCCS
    • Feb 26, 2023
    • 2 min read

Tax Incentives for Chicken Rearing in Closed House System

Updated: Jul 15, 2023

Update: The Ismail Sabri Government Budget is no longer applicable. Malaysia's national budget for 2023 was re-tabled again in February 2023.


To Download Revised Budget 2023 Speech and some other related publications - https://www.ccs-co.com/post/budget-2023-malaysia-madani

Current Position

RA was extended to the agricultural sector to encourage local food production and thus increase its supply.


In Budget 2003, chicken and duck farmers who switched from an open house system to a closed house system were given Reinvestment Allowance (RA) for 15 consecutive years.


The RA is given on 60% of qualifying capital expenditure incurred and is allowed to be set off against 70% (100% for promoted areas) of statutory income.



For YAs 2009 and 2010, chicken and duck rearers who reinvest to expand the closed house system in existing or new locations approved by the Ministry of Agriculture and Agro-based Industry are given incentives as follows:

  • projects located in the promoted areas are eligible for RA of 60% on qualifying capital expenditure to be set off against 100% of the statutory income, and

  • projects located outside the promoted areas are eligible for RA of 60% on qualifying capital expenditure to be set off against 70% of the statutory income.

Proposal

To encourage more chicken rearers to adopt an environmental-friendly closed house system, it is proposed tax incentives be given as follows:

  1. Accelerated Capital Allowance (ACA) 100% on the qualifying capital expenditure; and

  2. Income Tax Exemption of 100% equivalent to the qualifying capital expenditure.

These tax incentives are given on the Qualifying Capital Expenditure incurred from the year of assessment 2023 until the year of assessment 2025 and are to be fully absorbed within a year.

Effective Date

From the year of assessment 2023 until the year of assessment 2025.



Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is, therefore strictly at your own risk.

Keep in touch with us so that you can receive timely updates |

要获得即时更新，请与我们保持联系

1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍



1,054 views0 comments
bottom of page