Pre-Year-End Purchase 2026: Last-Minute Tax Planning

Why Pre-Year-End Purchase Works

Buying equipment before year-end gives you full Year 1 tax deduction. Even a December purchase counts for the entire year.

It's a smart last-minute tax planning move.

The Year-End Advantage

• Full initial allowance: 40% deduction in Year 1
• Current year benefit: Reduces this year's tax
• No waiting: Immediate tax savings
• Strategic timing: Last chance to reduce tax bill

December Purchase Example

Buy on December 15, 2026:

• Equipment cost: RM100,000
• Initial allowance: RM40,000 (40%)
• Claim in: 2026 tax year
• Tax saving: ~RM9,600 (at 24% rate)

Same Benefit as January Purchase:
Buying in December gives same initial allowance as buying in January.

Bank vs. Ing Heng for Year-End Purchase

Factor	Bank	Ing Heng Credit
Down Payment	10-20%	0%
Approval Speed	2-4 weeks	24-48 hours
Year-End Deadline	May miss deadline	Always meets deadline

Fast Approval for Year-End Deadline

Year-end purchases are time-sensitive:

• Must buy before: December 31
• Must take delivery: Before year-end
• Banks take weeks: Risk missing deadline

We Approve in 24-48 Hours:
• Never miss year-end deadline
• Equipment delivered on time
• Tax deduction secured

Pre-Year-End Strategy

Step 1: Review Tax Position

• Check your projected taxable income
• Calculate how much deduction you need
• Determine equipment budget

Step 2: Choose Equipment

• Select equipment you need
• Confirm 40% initial allowance applies
• Check delivery can be before year-end

Step 3: Apply Early December

• Don't wait until December 30
• Apply first week of December
• Secure approval and delivery buffer

Step 4: Take Delivery

• Equipment must be delivered before year-end
• Install and test equipment
• Document delivery date for tax records

0% Down Payment Year-End Advantage

With 0% down payment:

• No upfront cost: Don't drain year-end cash
• Preserve working capital: For year-end operations
• Full tax benefit: Same as cash purchase
• Interest deduction: Additional tax savings

Used Equipment for Year-End

Used equipment works well for year-end:

• Immediate availability: No long wait for delivery
• Lower cost: Same tax percentage deduction
• Banks reject: Used equipment older than 5 years
• Ing Heng accepts: Any age equipment

Year-End Tax Savings Example

Scenario: Taxable income RM300,000

Without Equipment Purchase:
• Tax at 24%: RM72,000

With RM100,000 Equipment (December 15):
• Initial allowance: RM40,000
• New taxable income: RM260,000
• Tax at 24%: RM62,400
Tax Saved: RM9,600

With 0% Down Payment:
• No RM10,000-RM20,000 upfront payment
• Cash preserved for year-end operations

2026 Year-End Planning Tips

1. Start early November: Plan year-end purchases
2. Apply early December: Don't wait until last week
3. Use 0% down: Preserve year-end cash
4. Consider used: Faster delivery, same deduction
5. Document everything: Delivery receipts, invoices

Real Year-End Success

"December 2026. Taxable income looked high. Accountant said buy equipment to reduce tax. Applied on December 10. Approved in 48 hours. Excavator delivered December 20. Got RM50,000 initial allowance. Taxable income reduced. Saved RM12,000 in taxes. 0% down payment meant no cash crunch. Year-end purchase was best tax move of the year."

— Razman Hamid, Business Owner

Make Your Year-End Purchase

Pre-year-end purchase reduces your tax bill. 0% down payment preserves cash. 100% full loan maximizes deduction. Fast approval meets any deadline.

We approve in 24-48 hours. Make your year-end purchase and secure your 2026 tax deduction today.