AUTOMATION CAPITAL ALLOWANCE (AUTOMATION CA) FOR MANUFACTURING AND SERVICES SECTORS
Manufacturers involved in innovative and productive activities eligible for an Automation Capital Allowance (Accelerated Capital Allowance) of 200% on the first RM10 million of qualifying capital expenditure.
Automation Capital Allowance (Automation CA) For Manufacturing And Services Sectors
1) Objective:
The Automation Capital Allowance (Automation CA) was introduced to encourage adoption of automation among manufacturing companies.
2) Tax Incentive
Categories
Tax Incentive
1.
High labour-intensive industries (rubber products, plastics, wood, furniture and textiles)
2.
Other industries including Service Sector
Automation CA of 200% on the first RM10 million in qualifying expenditure incurred within year of assessment from 2023 to 2027
3) Eligibility Criteria
- Companies must be incorporated under the Companies Act 2016;
- Tax residents of Malaysia;
- Companies must have been operating in manufacturing or services activities for a minimum of 36 months;
- The company must incur expenditures for at least one (1) machinery /equipment / software / system with an adaptation of Industry 4.0 within the eligible amount of RM10 million
- Industry 4.0 elements:-
- √ Big Data Analytics;
- √ Cloud Computing;
- √ Augmented Reality;
- √ Cybersecurity;
- √ Artificial Intelligence;
- √ Additive Manufacturing;
- √ System Integration;
- √ Simulation;
- √ Internet of Things (IoT);
- √ Autonomous Robots;
- √ Advanced Materials.
This incentive is eligible to be considered for application received by MIDA from 1st January 2023 until 31st December 2027.