An Analysis of the Gap between Accounting Depreciation and Tax Capital Allowance in Malaysia

Abstract

Malaysian tax system includes a tax depreciation rule separate from accounting depreciation. This paper is to compares and contrasts the accounting treatment of depreciation and the tax treatment of capital allowance. The gap between the accounting and tax is resulted from different definitions of capital expenditure and qualifying asset and also different deduction rate and useful life used in calculating depreciation. This paper proposes the government to revise the current capital allowance system.

A novel depreciation approach in an uncertain environment: interval type-2 fuzzy sets in the maritime industry

“…In response to this situation, they developed a model which created conditions in which the straight-line depreciation model could be preferred. Yussof et al ( 2014 ) analyzed the contrast between accounting depression and the tax treatment of capital allowance for Malaysia. According to the result of the study, it was proposed that the government redesigns the capital allowance system.…”

A Novel Depreciation Approach in an Uncertain Environment: Interval Type-2 Fuzzy Sets in Maritime

“…In response to this situation, they developed a model which created conditions in which the straight-line depreciation model could be preferred. Yussof et al, (2014) analyzed the contrast between accounting depression and the tax treatment of capital allowance for Malaysia. According to the result of the study, it was proposed that the government redesign the current capital allowance system.…”

Influência do investimento em bens de capital no desempenho econômico-financeiro sob a moderação da governança corporativa

“…O investimento em bens de capital pode ser mensurado pelo CAPEX, que evidencia o montante gasto na aquisição de imobilizado ou adições aos ativos existentes, os quais agregam valor ou capacidade ao ativo da empresa e propiciam benefícios econômicos futuros aos negócios (Yussof et al, 2014;Bispo, 2019). Para Scapens e Sale (1981), McConnell e Muscarella (1985) e Chen et al (2017), os investimentos na forma de CAPEX impactam o desempenho atual e futuro da empresa.…”