Puncak Furnishings Sdn Bhd (PFSB), a newly registered company set up a manufacturing plant in Simpang Ampat, Seberang Perai Selatan, Penang The company commenced its business starting from 1 July 2021 and closes its accounts on 30 June each year. It was expected that the company will be eligible for investment incentives, either a pioneer status or investment tax allowance under the Promotion of Investment Act 1986, The projected capital expenditure and adjusted income for the first five (5) years of operation are as follows: 2021 2022 2023 2024 2025 RM'000 RM 000 RM 000 RM 000 RM 000 Capital allowance 900 500 550 450 Factory 1.200 Warehouse 1,000 Plant and machinery 1,500 1.100 Adjusted income loss (750) (850) 1,000 1,300 1,500 450 PFSB also has intention to expand its businesses by exporting his rubber products to the ASEAN countries like Brunei and Thailand starting in the year 2025. PFSB expects to register export sales of RM1.5 million and RM4 million in the year 2025 and 2026 respectively. The value-added rate is estimated at 40%. REQUIRED: As a leader for the "Think-Thank Group", draft a report to PFSB on the following issues. Question : 14 1. calculation for pioneer status 2. calculation for investment tax allowance (1) The eligibility and the selection of incentives available, pioneer status or investment tax allowance. Support your answer with appropriate computations. Assume that the income tax rate is 24% for the projected five (5) years. Puncak Furnishings Sdn Bhd (PFSB), a newly registered company set up a manufacturing plant in Simpang Ampat, Seberang Perai Selatan, Penang The company commenced its business starting from 1 July 2021 and closes its accounts on 30 June each year. It was expected that the company will be eligible for investment incentives, either a pioneer status or investment tax allowance under the Promotion of Investment Act 1986, The projected capital expenditure and adjusted income for the first five (5) years of operation are as follows: 2021 2022 2023 2024 2025 RM'000 RM 000 RM 000 RM 000 RM 000 Capital allowance 900 500 550 450 Factory 1.200 Warehouse 1,000 Plant and machinery 1,500 1.100 Adjusted income loss (750) (850) 1,000 1,300 1,500 450 PFSB also has intention to expand its businesses by exporting his rubber products to the ASEAN countries like Brunei and Thailand starting in the year 2025. PFSB expects to register export sales of RM1.5 million and RM4 million in the year 2025 and 2026 respectively. The value-added rate is estimated at 40%. REQUIRED: As a leader for the "Think-Thank Group", draft a report to PFSB on the following issues. Question : 14 1. calculation for pioneer status 2. calculation for investment tax allowance (1) The eligibility and the selection of incentives available, pioneer status or investment tax allowance. Support your answer with appropriate computations. Assume that the income tax rate is 24% for the projected five (5) years
