Boss bought a laptop for RM2,800.
Passed the invoice to his accountant.
“Help me claim income tax.”
Accountant took one look.
“Boss, cannot claim everything in one go.”
Boss couldn’t understand.
“Why? I already paid for it, what!”
Accountant explained.
“Because the Small Value Assets limit is only RM2,000.”
Boss was stunned.
“Nowadays, what kind of laptop can you buy for RM2,000?”
“You want me to buy second-hand, or ask my staff to use an abacus?” 😂
Actually, this RM2,000 limit has remained unchanged since YA2020.
Laptop prices go up.
Printer prices go up.
Office equipment prices go up.
Only the tax limit never goes up. 😂
But Budget 2027 finally brings some good news!
The Government proposes to increase the Small Value Assets (SVA) limit,
from RM2,000 to RM3,000 per asset.
What does this mean?
Qualifying laptops, printers, office furniture and equipment.
If each item costs RM3,000 or less,
the company may claim 100% Special Capital Allowance in the same YA.
No need to spread the claim over several years.
More importantly.
For companies that qualify as MSMEs under tax rules,
there is no annual limit on the total SVA claim!
For non-MSME companies,
the annual limit is also proposed to increase from RM20,000 to RM30,000.
Let me give you an example.
ABC Sdn Bhd bought:
5 laptops, RM2,800 each.
1 printer, RM2,500.
6 office chairs, RM600 each.
Total RM20,100.
Under the existing SVA rules.
Laptops don’t qualify.
Printer doesn’t qualify.
Only the office chairs qualify.
Under the Budget 2027 proposal.
If ABC meets the requirements,
the entire RM20,100 may qualify for a 100% claim in YA2027!
Boss immediately asked.
“RM20,100? Government giving me back RM20,100 ah?” 😂
Accountant nearly fainted.
“Boss! It’s a Tax Deduction, not Cashback!”
“It only allows you to claim earlier. Government is not buying laptops for you lah!” 😂
But there are three things to watch out for.
First, just because you consider your company an SME doesn’t mean it automatically qualifies as an MSME under tax rules.
Second, the asset must meet the Qualifying Plant Expenditure requirements. Not everything you buy automatically qualifies for capital allowance.
Third, this is still a Budget 2027 proposal. We need to wait for the legislation to confirm the final rules and effective date.
Finally, a reminder to all SME bosses.
Don’t purposely buy things you don’t need just to save tax.
Spending RM3,000 doesn’t mean you save RM3,000 in tax.
Real tax savings come from proper planning.
Not simply shopping like there’s a year-end sale. 😂
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