To encourage investors to prioritize information technology development, the government has introduced a tax incentive scheme in the form of capital allowance. Under this scheme, any investment in capital projects that align with the digital economy will be eligible for tax incentives.

The company has made a decision to acquire digital machinery amounting to RM$150,000.$ This asset will be depreciated over a period of $5$ years, with no anticipated salvage value at the end of its economic life. The capital allowance for this asset is set at $40\%$ for the first year and $15\%$ for the subsequent four years. Considering a tax rate of $25\%,$ we can calculate the yearly deferred tax on the annual timing difference.