A business which qualifies for the Investment Tax Allowance can enjoy an allowance of 60% in regard to capital expenditure acquired with five years from the time of qualification. The Investment Tax Allowance can be counterbalanced against 70% of the statutory income. Any allowance that remains unused can be transferred to the following years up until it its depletion.
Of the statutory income 30% will be subject to taxation at the determined corporate tax rate.
Businesses based in Sarawak, however, will receive an allowance of 100% in regards of the expenditure acquired. It is possible to use the allowance to set-off against 100% of the statutory income.