16. Initial and annual allowances. Machinery or plant

Where, in or after the basis period for the first year of assessment under this Act, a person carrying on a trade, profession or business incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, there shall be made to him, for the year of assessment in the basis period for which the expenditure is incurred, an allowance (in this section referred to as an initial allowance)

Where at the end of the basis period for any year of assessment a person has in use machinery or plant for the purpose of his trade, profession or business, there shall be made to him in respect of that year of assessment an allowance (in this section referred to as an annual allowance)

Notwithstanding the foregoing, where chargeable income of a company resident in Brunei Darussalam derives from the business of transportation by sea of liquefied natural gas and that company incurs capital expenditure on the purchase of a vessel or vessels for the purposes of that business, the initial allowance in respect of the expenditure so incurred shall be one-sixth of that expenditure. Thereafter there shall be a maximum of five annual allowances in respect of such expenditure, which annual allowances shall be made consecutively in each of the next succeeding five basis periods in respect of any such vessel in use by such company, each such annual allowance being equal to the initial allowance.

Notwithstanding subsections (1) and (2), in respect of a motor car to which this subsection applies —

Subsection (4) applies to a motor car which is constructed or adapted for the carriage of not more than seven passengers (exclusive of the driver) and the weight of which unladen does not exceed 3,000 kilograms.