Extension/Renovation of factory building is allowed for tax deduction?

What is Industrial Building Allowances (IBA)?

IBA is allowed a person who incurred cost of factory building expenditure for the purpose of his business to claim allowances.

Eligibility to claim:

• Initial Allowance (IA): 10%

• Annual Allowance (AA): 3%

How do you know your factory building expenditure incurred is eligible for IBA?

A simple checklist

1. The building carry out manufacturing or processing operation?

2. The expenditure incurred is for production area?

3. The expenditure incurred is for the purpose of building improvement.

If all the question is “Yes”, then the expenditure is eligible for IBA claim

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