Accelerated Allowance 2026: Faster Tax Deductions

What is Accelerated Allowance?

Accelerated allowance lets you deduct equipment cost faster than normal. Instead of spreading deductions over many years, you get bigger deductions in the early years.

This puts more tax savings back in your pocket sooner.

How Accelerated Allowance Works

Normal Allowance: 20% annual allowance over many years

Accelerated Allowance: 40% or more in Year 1

Example: RM100,000 Equipment
• Normal: RM20,000 in Year 1
• Accelerated: RM40,000 in Year 1

Qualifying Equipment for Accelerated Allowance

• High-technology equipment: Advanced machinery
• Energy-efficient equipment: Green technology
• Automation equipment: Robotics and smart systems
• Safety equipment: Workplace safety upgrades

Bank vs. Ing Heng: Same Allowance, Better Cash

Factor	Bank	Ing Heng Credit
Down Payment	10-20%	0%
Accelerated Allowance	Same	Same
Equipment Age	5 years max	NO Age Limit

Accelerated vs. Normal Allowance

RM100,000 Equipment Comparison

Normal Allowance (20%):
• Year 1: RM20,000
• Year 2: RM16,000
• Year 3: RM12,800
• Year 4: RM10,240
• Year 5: RM8,192

Accelerated Allowance (40%):
• Year 1: RM40,000
• Year 2: RM12,000
• Year 3: RM9,600
• Year 4: RM7,680
• Year 5: RM6,144

Benefit: RM20,000 more deduction in Year 1 = RM4,800 tax savings at 24% rate

How to Apply for Accelerated Allowance

Step 1: Check Qualifications

• Verify equipment type qualifies
• Check industry eligibility
• Review LHDN guidelines

Step 2: Get Approval

• Apply to LHDN before or at time of purchase
• Submit equipment specifications
• Receive approval letter

Step 3: Claim the Allowance

• Claim accelerated rate in Year 1
• Continue with annual allowance after
• Keep approval letter for records

Used Equipment for Accelerated Allowance

Some used equipment qualifies:

• Energy-efficient: Used green technology may qualify
• Safety equipment: Used safety upgrades qualify
• Banks reject: Used equipment older than 5 years
• Ing Heng accepts: Any age qualifying equipment

Accelerated Allowance + 0% Down Payment

Perfect tax and cash flow combination:

• Bigger Year 1 deduction: 40% vs 20%
• No upfront cost: 0% down payment
• Cash preserved: For operations and growth
• Interest also deductible: More tax savings

2026 Accelerated Allowance Planning

1. Check eligibility: Does equipment qualify?
2. Apply early: Get approval before purchase
3. Use 0% down: Preserve cash while getting accelerated deduction
4. Buy in January: Maximize Year 1 benefit
5. Keep documents: Approval letter, invoices

Real Tax Savings

"Bought energy-efficient forklift for RM80,000. Qualified for accelerated allowance. Got 40% in Year 1 = RM32,000 deduction. Normal would have been RM16,000. Extra RM16,000 deduction saved RM3,840 in taxes. Used 0% down payment financing. No upfront payment. Cash flow improved immediately. Accelerated allowance put tax savings in my pocket faster."

— Ahmad Firdaus, Warehouse Owner

Get Your Accelerated Allowance

Accelerated allowance provides faster deductions. 0% down payment preserves your cash. 100% full loan maximizes your purchase. NO age limit on qualifying equipment.

We approve in 24-48 hours. Buy qualifying equipment and claim accelerated allowance today.