Question
Poto Bhd (PB), a manufacturing company and was incorporated in Kelantan on 1 February 2014 with an authorized and paid-up share capital of RM50 million.
Poto Bhd (PB), a manufacturing company and was incorporated in Kelantan on 1 February 2014 with an authorized and paid-up share capital of RM50 million. PB is engaged in producing promoted products. The company had acquired a piece of land for RM5 million and construct a factory on the land. PB completed the construction of the factory on the land on 31 August 2016, at a cost of RM10 million. After its completion, PB is commenced the manufacturing of hi-tech machineries for domestic and international market on 1 October 2016. PSBs financial year end is on 30 September annually. As business growth and profitable, PB is embarked on business expansion. It has begun with construction of a new factory building at a cost of RM4.5 million on the existing land which completion date is expected no later than 30 June 2022. At the same time, PB plans to install new hi- tech machinery costing RM60 million by the end of July 2022 for the production to commence in early August 2022.
Required:
determine whether PB is qualifies for the reinvestment allowance by stating all the conditions to be fulfilled by the company.
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