You are required to compute the Industrial Building Allowance (IBA) from the year of assessment 2016 until the year of assessment 2020. Kindly assist me to solve this tax question
In January 2016, Ohana Margenia Sdn Bhd (OMSB) (accounts ending on 31
December) purchased a 12-storey hotel building costing RM10 million. The hotel
business commenced operations in June 2016 and its management is controlled
by the OMSB. The hotel building qualifies as an industrial building under the
provision of paragraph 37F, Schedule 3 of the ITA.
From June 2016 to 2020, OMSB rented the ground floor, the third floor and the
fourth floor to outsiders according to the rental period as follows:
Year Tenant Floor of building
2016 to 2020 Robert Co. ½ of the ground floor
2018 to 2020 Jessy Co. ¼ of the ground floor
Nana Co. ¼ of the ground floor
Frag Wellness Spa Co. ½ of the third floor
Softcare Natural Pharmacy Co. ½ of the third floor
2020 Raufa Co. Fourth floor
You are required to compute the Industrial Building Allowance (IBA) from the year of
assessment 2016 until the year of assessment 2020.
Kindly assist me to solve this tax question
Step by step
Solved in 2 steps
