MALAYSIA GREEN INVESTMENT TAX ALLOWANCE (GITA) FOR OWN COMSUMPTION
Companies undertake in green technology project for own consumption
may enjoy up to 100% Green Investment Tax Allowance (“GITA”) to be
offset against 70% of statutory income. Promoted activities such as
green building, renewable energy system, energy efficiency, battery energy storage system, electric vehicles etc.
In 2024 Budget, the green technology tax incentives have been revised to the following categories:
- Green Investment Tax Allowance (GITA) Project for Business Purposes;
- Green Investment Tax Allowance (GITA) Asset for Own Consumption; and
- Green Income Tax Exemption (GITE) Solar Leasing
The Malaysian Green Technology and Climate Change Corporation (MGTC) has issued a new guideline for GITA for own
consumption project as below:
(i) Investment Tax Allowance :
Tier 1
Tier 2
Qualifying Activities
Qualifying asset as approved by Minister
of Finance, Battery Energy Storage
System (BESS) and Green Building.
Qualifying asset as approved by Minister
of Finance (Appendix 11), Renewable
Energy System and Energy Efficiency
(Appendix 2).
Percentage of GITA
100%
60%
Percentage (%) of Statutory
Income to be Set-Off
70%
70%
Qualifying CAPEX
- The qualifying capital expenditure must be an approved asset by MOF that have been verified by MGTC and is listed under the MyHIJAU Directory;
- For Green Building, the qualifying CAPEX must be verified by the locally Green Building Rating Tools/ Certification Body approved by Government;
- The asset must be new and owned by the Company;
- The asset must be used in the business carried out by the company in Malaysia for own consumption and not for income generation.
Qualifying Asset
- Electric vehicles (for commercial / industrial used only);
- EV Infrastructure;
- Green Building;
- Energy Storage
- Energy Efficiency;
- Renewable Energy System;
- Waste Composter or waste recycling;
- Wastewater recycling or rainwater harvesting
Incentive Period
Qualifying Capital Expenditure incurred starting from 1 January 2024 until 31 December 2026.
Application Period
The application made under the GITA Asset Guidelines must be received by the
Malaysian Green Technology and Climate Change Corporation [“MGTC”] from 1st
January 2024 until 31st December 2026.
(ii) Eligibility Criteria:
a) New or existing Company:
- A newly established company that incurred qualifying capital expenditure under GITA Asset; OR
- Existing Company operating in Malaysia but has not incurred qualifying capital under GITA Asset and has not been approved for Green Technology Incentive.
b) Companies within the same group incurring the qualifying capital expenditure:
- The project carried out in building/location separately from activities carried out by holding company or related companies;
- The plant, machinery and equipment used shall be separately used and shall not be transferred from holding company or related companies;
- Not shares the same employees as per holding company or related companies except for the management staff and directors of the Company;
- This project must not result in a reduction in the investment of holding company or related companies.
c) To comply all the following criteria:
- Minimize the degradation of the environment or reduce greenhouse emission;
- Promotes health and improvement of environment; and
- Conserves the use of energy, water and/or other forms of natural resources or promote the use of renewable energy or able to recycle waste material resources.
