ii. Corporate membership

Membership and entrance fees paid by employers are not subject to tax.

However, for monthly subscription, where the recreation club membership is paid by the employer and extended to the company's senior executives to further the company's business objectives, the monthly subscription for one recreation club is exempted from income tax. If monthly subscription is paid by the employer for more than one recreation club, only one monthly subscription which is the highest, will be exempted from income tax.]
  Following a meeting between MIA, MACPA and the Inland Revenue Board on August 5, 1998, the Inland Revenue Board has decided to delete Part F in the RA claim form. Therefore, companies submitting RA claim forms for year of assessment 1998 and subsequent years of assessment are not required to complete Part F of the form pertaining to the certification by a qualified external auditor.
  By virtue of the Income Tax (Qualifying Plant Allowances) (Computers And IT Equipment) Rules 1998 which is deemed effective from year of assessment 1996, the initial and annual allowance on qualifying plant expenditure incurred on the provision of computers and IT equipment will be calculated at a rate of 20% and 40% respectively.

For the purposes of these Rules, IT equipment includes equipment used in the gathering, processing and communication of information through computerisation and telecommunications combined.


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