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Tax Incentives for Green Industry

 


GreenIncentives

1. Green Technology Incentive includes more qualifying activities

To strengthen the development of green technology, the Government will continue to provide incentives in the form of investment tax allowance for the purchase of green technology assets and income tax exemption for the use of green technology services and system.

The incentives which were announced in Budget 2014 will cover broader scope of green technology activities in the areas of energy, transportation, building, waste management, and supporting services activities. It also facilitates the transition of the expired (by 31 December 2015) tax incentives relating to renewable energy (RE) and energy efficiency (EE) projects under the Promotion of Investment Act (PIA), 1986.

A) Tax Incentive for Green Technology Project

Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on a green technology project from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilised allowances can be carried forward until they are fully absorbed.

Green technology project related to renewable energy, energy efficiency, green building, green data centre, and waste management can qualify for this tax incentive. Please refer to the Guideline for Application for Incentives and/or Expatriate Posts for Green Technology (GT) at www.mida.gov.my for more details on qualifying activities and eligibility criteria.

Applications received by 31 December 2020 are eligible for this incentive. Applications should be submitted to MIDA.

B) Tax Incentive for Green Technology Services

Income tax exemption of 100% of statutory income from the year of assessment 2013 until the year of assessment 2020.

Green technology services related to renewable energy, energy efficiency, electric vehicle (EV), green building, green data centre, green certification and verification, and green township can qualify for this tax incentive.

Applications received by 31 December 2020 are eligible for this incentive. Applications should be submitted to MIDA.

C) Tax Incentive for Purchase of Green Technology Assets

Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on green technology asset from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilised allowances can be carried forward until they are fully absorbed.

The purchase of green technology assets as listed in MyHijau Directory can qualify for this tax incentive. Please refer to  www.greendirectory.my for the list of assets which have been certified by the Malaysia Green Technology Corporation (MGTC) as MyHijau and approved by the Ministry of Finance (MoF).

Applications received by 31 December 2020 are eligible for this incentive. Applications should be submitted to MGTC.

Please click the link below to download the Guidelines and Form for Incentives and/or Expatriate Posts for Green Technology (GT).

Download Guidelines GT/JA

Download Form GT/JA

2. Incentives for Establishment of Waste Eco Parks (WEPs)

Waste Eco Park (WEP) aims to promote waste recycling, recovery and treatment activities by the industries and provides a sustainable solution to waste management problem. This will encourage investments in facilities and infrastructure towards holistic waste management activities. In order to promote the activities, there are incentives available for WEP Developer, WEP Manager and WEP Operator (companies operating in the WEP).

Please click the link below to download the guideline and procedure for Waste Eco Park (WEP) incentives and/or expatriate posts.

Guidelines for WEP Incentives

A) WEP Developers 

Applications received by MIDA from 1 January 2016 until 31 December 2020, are eligible to be considered for this incentive.

Please click the link below to download the application form for WEP Developer

Application Form - WEP Developer

 

B) WEP Managers

Applications received by MIDA from 1 January 2016 until 31 December 2020, are eligible to be considered for this incentive.

Please click the link below to download the application form for WEP Manager

Application Form - WEP Manager

 


C) WEP Operators
(companies operating in WEP)

Applications received by MIDA from 1 January 2016 until 31 December 2020, are eligible to be considered for this incentive.

Please click the link below to download the application form for WEP Operator  

Form ICAJA1

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Last Updated : Wednesday 18th January 2017