Taxation Email
Taxation Email
Taxation Email
RM
Cost of land 120,000
Legal fee for the land acquisition 12,500
Legal fee (factory) 20,000
Cost of demolished a non factory building 62,000
Contraction cost 474,500
Drainage and irrigation 50,000
Labour and transportation cost 250,000
Cost of changed land status 62,500
Cost of plant 40,000
Cost of preparing a site to install the plant 125,000
The building was constructed and used in 2003 and divided as a office and
showroom for 1//11 from the total building space. Due to financial problems,
Kelana Suria Sdn. Bhd stopped the rubber production and the building was sold to
Wawasan Gemilang Ltd on 1st September 2010 for RM 1,250,000 of which
RM 250.000 was related to the cost of land. Wawasan Gemilang Ltd’s
financial year report ended 31st December every year and involved in the
manufacture of medical equipment.
Rule of 75%
RM
Cost of plant 40,000
Cost of preparing site 12,500
TOTAL COST 165,000
𝟏𝟐𝟓𝟎𝟎𝟎
/𝟏𝟔𝟓𝟎𝟎× 100 % = 76% > 75%
𝟎
∴ The Cost of preparing site is more than 75%, so the cost of entitled for
Industrial building.
RM
Cost of land NIL
Legal fee for the land acquisition NIL
Legal fee (factory) 20,000
Cost of demolished a non factory building 62,000
Contraction cost 474,500
Drainage and irrigation 50,000
Labour and transportation cost 250,000
Cost of changed land status NIL
Cost of plant 40,000
Cost of preparing a site to install the plant 125,000
TOTAL COST 1,021,500
Rule of 10%