Malaysia Government will provide tax incentives for the purchase of green technology equipment, besides giving tax exemption on the use of green technology services.
With these tax incentives, it will allow small and medium enterprises to grow the Renewable Energy market. The main purpose of the Malaysia Government is to attract potential investors and industry players to invest in Renewable Energy.
In addition, the Malaysia government wants to motivate companies to acquire green technology assets and of course, to enhance the number of green technology service providers.
The three groups under the Green Technology Tax incentive:
GITA Assets are for companies that acquire qualifying green technology assets and there are listed under MyHIJAU Directory. Companies should comply with ALL of the following criteria:
GITA Projects are for companies that undertake a qualifying green technology. Companies should comply with ALL of the following criteria:
The application should be received by MIDA until 31 December 2020.
GITE Services is for companies which provide green technology services which have been verified by GreenTech Malaysia, and listed under the MyHIJAU Directory. Companies must meet the criteria of green technology service providers as follows:
*Note: Competent personnel are defined as holding a certificate of competency as a service provider in the related field of green technology. The certificate must be recognised by the Government or a Professional Body in Malaysia.
**Green Policy is a statement about the commitment to sustainability and environment management by the company.
All applications must be submitted to MIDA before 31 December 2020.
100% of statutory income from the date of application received by MIDA until the year of assessment 2020 (the maximum period is 5 years from the date of commencement).
For SEDA, there are two main qualifying activities to be approved for the tax incentives:
*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 invest in energy efficient equipment or technologies and invest in energy saving equipment.
Right now, the entire solar power industry in Malaysia is producing 67% of the 270MW of renewable energy.
There are several solar farms in Malaysia that sells electricity to the grid. Solar farms are designed to produce enough electricity power for thousands of homes and businesses. If you have never seen one, they are just like the solar panels you install on your roof to generate electricity for your needs.
It’s important to start using renewable energy sources now because they provide clean energy for our lives and reduce climate warming and pollution; and by reducing the use of oil and gas, we can reduce the risk of cancer and heart attacks.