Capital Allowances and Who Can Claim

Capital Allowances and Who Can Claim 资本补贴及谁可以报销

Capital allowances are deductions claimable for the wear and tear of qualifying fixed assets such as industrial machinery, office equipment and sign boards. Capital allowances are generally granted in place of depreciation, which is not deductible. 资本补贴是对符合资格的固定资产(如:工业机械、办公室设备和招牌)的损耗可申请扣除的款项。资本补贴一般用来代替折旧,因为折旧是不可扣除的。

Capital Allowances are Deductions for Fixed Assets 资本补贴是固定资产的扣除项目

Capital allowances are deductions you can claim for wear and tear of qualifying fixed assets bought and used in your trade or business. Qualifying fixed assets include carpets, machinery and office equipment. For tax purposes, we refer to qualifying fixed assets as “plant and machinery”. 资本补贴是你可以要求扣除的磨损和合格的固定资产购买和使用在你的贸易或业务。符合条件的固定资产包括地毯、机械和办公设备。在税务上,我们称固定资产为“厂房和机器”。

Fixed assets “wear and tear” or depreciate over time. Depreciation accounted for in financial statements is not tax deductible. Capital allowance is given instead for assets that qualify. Claiming capital allowance over a period of time is also known as “writing off the asset”. 固定资产“损耗”或随时间折旧。在财务报表中计入的折旧是不能减税的。对符合条件的资产则给予资本补贴。在一段时间内申请资本备抵也被称为“注销资产”。

Who Can Claim Capital Allowances 谁可报销资本补贴

Companies that carry on a trade or business may claim capital allowances on expenditure incurred on the provision of “plant and machinery” for use in its trade or business. 经营一项贸易或业务的公司,可就为其贸易或业务提供“厂房及机器”而招致的开支报销资本补贴。

An expense is incurred when the legal liability to pay has arisen, regardless of the date of actual payment of the money. 无论实际付款日期如何,当支付的法律责任已经产生时,费用就产生了。

Assets that Qualify for Capital Allowances 符合资本补贴的资产

Qualifying fixed assets must be “plant and machinery” for use in your trade, business or profession. For example, a company making glass bottles may claim capital allowances for a machine that packs these bottles into boxes. In addition, capital allowances cannot be claimed on assets bought solely for donation purpose as they are not for use in the trade or business. 符合资格的固定资产必须是“工厂和机器”用于您的贸易,业务或专业。例如:一家生产玻璃瓶的公司可能会要求为将这些瓶子包装成盒子的机器提供资金补贴。此外,仅为捐赠目的而购买的资产不能报销资本补贴,因为这些资产不用于交易或业务。

Capital allowances cannot be claimed on expenses for assets specifically prohibited under the Income Tax Act (e.g. S-plated private passenger car). 资本补贴不能用于所得税法案明确禁止的资产支出(例如S镀私人轿车)。

Plant and Machinery 厂房和机械

“Plant and machinery” generally refers to a fixed asset that has the following characteristics: “厂房与机械”一般是指具有以下特征的固定资产:

The item is not a trading stock of your company (not for resale purposes); 该物品不是贵公司的交易存货 (不用于转售);

The item functions as an apparatus used for carrying out the business or trade activities of your company; and 该物品作为执行贵公司业务或贸易活动的器具;和

The item is not part of the setting or part of the premises in which your business is carried on. Those items that are part of the setting or part of the premises may be claimed as renovation or refurbishment instead under Section 14Q deduction. 该物品不属于经营业务的环境或场所的一部分。属于布景或房地一部分的项目可根据第14Q条扣除作为装修或翻新而申领。


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