Agriculture Allowance

Are agriculture companies entitled to any tax incentives?

Agriculture allowance

A taxpayer who incurred Qualifying Agriculture Expenditure is entitled to claim Agriculture Allowance.

1. Clearing and preparation of land

2. New planting (exclude replanting) either:

a) new crop of any product

b) replace old crops with a crop of a different type

3. Construction on a farm of a road or bridge

4. Construction on a farm of a building either:

a) used in working of farm

b) welfare of persons

c) living accommodation

5. Schedule of Agriculture Allowance

1. Cost of land

2. Cost of plant and machinery used in the farm

1. If disposal within 5 years: agriculture charge equal = allowances claimed in prior years

2. If disposal made after 5 years: no agriculture charge will be made

Reference: Public Ruling No. 1/2016 Agriculture Allowance

https://phl.hasil.gov.my/pdf/pdfam/PR_01_2016.pdf

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