Q：
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What can be included as prescribed fixed asset?
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A：
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Prescribed fixed asset can be generally defined as:
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Machinery or plant used specifically and directly for any manufacturing process;
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Computer hardware, other than that which is an integral part of any machinery or plant; and
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Computer software and computer systems.
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Q：
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What is the timing of deduction?
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A：
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Deduction for specified capital expenditure incurred on the provision of a prescribed fixed asset is allowed by providing for a 100% immediate write-off in respect of the expenditure.
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Q：
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Is there any restriction under deduction of expenditure on prescribed fixed assets?
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A：
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It is restricted when expenditure incurred by a person on the provision of the prescribed fixed asset include:
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Holds rights as a lessee under a lease; and
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Incurred under a hire-purchase agreement.
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Q：
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What is the tax treatment when the prescribed fixed asset has been sold?
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A：
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When the prescribed fixed asset in respect of which a deduction has been allowed is sold, the sales proceeds exceeding the amount of deduction previously allowed, it should be treated as a trading receipt and chargeable to profits tax.
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Q：
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Can I still claim full deduction if the prescribed fixed asset used partly in the production of profits?
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A：
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No, the deduction shall be such part of the specified capital expenditure as is proportionate to the extent of the use of the asset in the production of the chargeable profits.
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FAQ
