Automation Capital Allowances
Key Takeaway
- 200% Automation Capital Allowance on first 2 million to 4 million expenditure incurred within YA 2015 to 2023;
- Effective date of application : 1 Jan 2015 until 31 Dec 2023;
- High labour-intensive industries or industries adopt the automation process.
The Automation Capital Allowance (Automation CA) was introduced
to encourage adoption of automation among manufacturing
companies.
It is divided into two (2) categories:-
It is divided into two (2) categories:-
Categories
Incentives
High labour-intensive
industries (rubber products,
plastics, wood, furniture and
textiles)
Automation CA of 200% on the
first RM4 million expenditure
incurred within year of
assessment from 2015 to
2023.
Other industries
Automation CA of 200% on the
first RM2 million expenditure
incurred within year of
assessment 2015 to 2023.
Eligibility Criteria
- Manufacturing companies incorporated under Companies Act 1965 / 2016;
- Resident in Malaysia;
- Engaged in manufacturing activities at least 36 months;
- Automation machine or equipment used directly in manufacturing activities.
Effective date of application:
Application received by Malaysian Investment Development Authority (MIDA) from 1 January 2015 until 31 December 2023 is eligible to be considered for this incentive.
Source: Malaysian Investment Development Authority
Application received by Malaysian Investment Development Authority (MIDA) from 1 January 2015 until 31 December 2023 is eligible to be considered for this incentive.
Source: Malaysian Investment Development Authority
