On October 25, 2013, the Green Technology Tax Incentive for the purchase and use of green technology was announced in Malaysia with great anticipation. This was definitely good news for the solar industry in Malaysia.
Today, the Malaysian government is still encouraging the purchasing of green technology equipment and assets, such as LED lighting, solar panels, wind energy, and electric vehicles using an Investment Tax Allowance (ITA). Moreover, an Income Tax Exemption (ITE) for green technology service providers, such as solar companies in Malaysia has also been introduced.These are the three groups under the Green Technology Tax Incentive:
The Green Investment Tax Allowance (GITA) assets are for companies that obtained qualifying green technology assets. To take advantage of this tax allowance, companies should comply with all the following requirements:
GITA Projects are for companies that undertake a qualifying green technology. Companies should comply with all of the following requirements:
The GITE is applicable for qualifying green technology service providers listed under the MyHIJAU Directory.
There are two qualifying activities:
1. Renewable Energy - Energy from a source that is not depleted when used, such as:
2. Energy Efficiency - Companies that reduce the amount of energy required to provide products and services, and invest in energy-efficient equipment or technology.
It is important to understand that the solar industry in Malaysia is producing 67 per cent of the 270MVH or renewable energy right now. Companies are installing more solar panel systems in Malaysia every day to take advantage of this green technology, save money and conserve the environment.
The solar power in Malaysia has all the elements for higher growth given the excellent conditions in the country. According to SEDA, the target for renewable energy generation is 2,080 MW or 11% by 2020 and 4,000 MW by 2030. The incentive will certainly add momentum to the adoption of green technology around the country.
Last but not least, the benefits of the use of solar energy are simply amazing because: