The Government through Malaysian Investment Development Authority (MIDA) has been playing an active role in strengthening the development of green technology by introducing the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE). This will enable small and medium enterprises (SMEs) to grow the Renewable Energy (RE) market. Therefore, the Government has initiated incentives to attract potential investors and industry players to invest in Renewable Energy:

  • Green Investment Tax Allowance – GITA (Project): GITA Investment Tax Allowance (GITA) of 100% of qualifying capital expenditure (QCE) incurred from the date of application received by MIDA until 31 December 2020. GITA can be offset against 70%. GITA comprises of Renewable Energy, Energy Efficiency, Green Building, Green Data Centre and Integrated Waste Management Activity.
  • Green Income Tax Exemption – GITE (Services): 100% of statutory income from the year of assessment where the date of application received by MIDA until the year of assessment 2020 which encompasses Renewable Energy, Energy Efficiency, Green Building, Green Data Centre, Green Township, Certification/Verification Bodies and Electric Vehicles (EV).
Solar Incentive for Malaysia - GITA and GITE. Tax Deduction

Qualifying Activities Related to SEDA:

1. Renewable Energy
Commercial and industrial business entities which undertake generation of energy in the form of electricity, steam, heat and chilled water using renewable energy resources such as:
a) Solar Power (including NEM)
b) Biomass
c) Biogas
d) Mini hydro
e) Geothermal

*Note: Projects which have been approved with Feed-in-Tariff (FiT) for solar by SEDA are not eligible for the Investment Tax Allowance.

2. Energy Efficiency

Companies investing in energy efficient equipment or technologies and invest in energy saving equipment.

Contact Yongyang for more details on Procedures, Guidelines and Forms.