Green Investment Tax Incentives
Green Investment Tax Allowance (GITA) Assets

Features for GITA Assets

Features

Description

Eligibility

Companies that had incurred qualifying capital expenditure in green technology investment and complying ALL of the following criteria:-

    1. minimise the degradation of the environment or reduce greenhouse emission;

    2. promotes health and improvement of environment; and

    3. 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.

Rate of incentive

  • Green Investment Tax Allowance (GITA) of 100% of qualifying capital expenditure incurred on approved green technology asset from the date of purchasing until 31st December 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.

Interpretations

  • Qualifying capital expenditure means the purchase of approved green technology asset by a qualifying company that have been verified by GreenTech Malaysia.

  • Approved green technology asset means approved asset by MOF and that have been verified by GreenTech Malaysia and is listed under the MyHIJAU Directory.

  • Qualifying company means a company which is incorporated under the Companies Act, 1965 and a resident in Malaysia.

Commencement date

  • The eligibility period would be for qualifying capital expenditure incurred from the date of application received by GreenTech Malaysia until the year of assessment 2020.

Other key features

  • Companies would be allowed to claim GITA and other incentives (e.g. reinvestment allowance or ITA) in relation to different business source/activity as long as the same asset does not qualify for multiple incentives.

  • Where a particular asset is eligible to qualify for GITA and another incentive in relation to the same business source/activity, the company may only elect only one of the incentives applicable to the same asset.

  • GITA and GITE for use of green technology services would be mutually exclusive.

  • Companies currently enjoying energy efficient or renewable energy incentives would be able to qualify for the GITA asset provided that there would be additional investment and it is not in respect of the same asset.

  • Companies granted energy efficient or renewable energy incentives would be able to elect for GITA asset provided the company has not claimed the investment tax allowance on the approved energy efficient or renewable energy incentives in the tax computation.

Conditions

  • The green technology asset in the GITA Asset must be owned by the company.

  • The green technology asset must be used in the business carried out by the company in Malaysia.

  • The qualifying capital expenditure must be qualified asset by MOF that have been verified by GreenTech Malaysia and is listed under the MyHIJAU Directory.

List of Qualifying Assets

The eligibility period would be for qualifying capital expenditure incurred from the date of application received by GreenTech Malaysia until the year of assessment 2020.

NO.

SECTOR/ AREA

TECHNOLOGY

PRODUCT

APPLICATION TO

ENERGY

1

Energy Efficiency

Chiller

Energy Efficient

GreenTech Malaysia

2

Heat operated Air Conditioners

High Efficiency Absorption and Adsorption Air conditioners

GreenTech Malaysia

3

Cooling Tower

High Efficiency Cooling Towers

GreenTech Malaysia

4

Air Compressor

High Efficiency Air Towers

GreenTech Malaysia

5

Industrial Furnaces

Energy Efficient Industrial Furnaces

GreenTech Malaysia

6

Cogeneration System

Cogeneration Systems

MIDA

7

Renewable Energy

Solar Thermal

Solar Thermal Systems and Collectors

MIDA

8

 

Biomass combustion/gasification/

Combined heat power

Biomass Gasification furnace/combustion chamber

MIDA

9

 

Biomass Gas Engine

MIDA

10

 

Biomass Reciprocating Engines

MIDA

11

 

Biomass Combustion/Gas Turbines

MIDA

12

 

Biomass Steam Turbines

MIDA

13

 

Biomass Oil Recovery System

MIDA

14

 

Biomass Fuel preparation system (Press & Shredding machine)

MIDA

15

 

Biomass Fuel feeding system (Rotary Drum/Conveyor Belt/Screw Conveyor)

MIDA

16

 

Biomass Heat Recovery System Generator

MIDA

17

 

Condensing Biomass Boiler

MIDA

18

Mini Hydro

Hydro Turbines

MIDA

19

 

Mini Hydro Generators

MIDA

20

 

Hydro pump and motors

MIDA

21

 

Penstock (pipe/tunnels)

MIDA

22

Biogas

Biogas pre-treatment system/biogas purifying system/biogas scrubber system

MIDA

23

 

Biogas dewatering system

MIDA

24

 

Biogas Digestion System (covered lagoon/digester tank/gas well)

MIDA

25

 

Biogas analyser

MIDA

26

Energy Storage

Battery

GreenTech Malaysia

BUILDING

27

 

Energy Management System

Building Energy Management System

MIDA

28

 

Single or double glazing systems

MIDA

29

Heat Barrier

Low radiation window curtain system

MIDA

30

 

Office equipment/furniture

Efficient server system

MIDA

31

 

Energy Saving Lighting

LED & Energy Saving Lighting

MIDA

WASTE

32

Waste

Waste collection

Trash compactors with energy efficient motors

GreenTech Malaysia

33

Waste recycling/recovery

Energy efficient Balers

MIDA

34

 

Plastic recycling machines

MIDA

35

 

Magnetic separators

MIDA

36

Waste treatment

Composting equipment

MIDA

37

 

Energy efficient Incinerator

MIDA

38

Waste disposal

Energy efficient landfill compactors

MIDA

39

 

Methane gas recovery system

MIDA

40

Water

 

Energy efficient pumps

GreenTech Malaysia

As been announced during the Budget 2019, there will be additional asset to the current qualifying asset that eligible for the incentive. The eligibility period would be for qualifying capital expenditure incurred starting from 1st January 2019 until the year of assessment 2020.

NO.

SECTOR/ AREA

TECHNOLOGY

PRODUCT CATEGORIES

1

Energy Efficiency

Transformer

Energy Efficient transformer (up to 33kV)

2

Building

Energy efficient appliances

Solar air-conditioning equipment/system

3

Thermal energy storage equipment/system

4

Variable air volume (VAV) equipment/system

5

Variable-refrigerant-volume (VRV) equipment/system

6

Transport

Electric vehicle

Electric motorcycle/scooter

7

Electric bus

8

Electric MPV/truck

9

Infrastructure

Electric Vehicle (EV) charging equipment/system

Schematics of the Application Process

PROCESS

DESCRIPTION

  • Applicant must check the qualifying asset in the MyHIJAU Directory for GITA Assets application.

  • If the asset is not listed under the MyHIJAU Directory, the Applicant shall notify the manufacturer or supplier to register under the MyHIJAU Mark.

  • GreenTech Malaysia receive information and data submitted by the Applicant as per GreenTech Malaysia GITA/A Form (Refer to website at www.myhijau.my or www.greentechmalaysia.my). Processing fee (RM1,000 per application) must be received upfront by GreenTech Malaysia via online banking, cash deposit or bank draft.

  • GreenTech Malaysia evaluate and verify the information and supporting documents submitted. If the information or supporting documents provided are incomplete, the Applicant will be notified via email. The Applicant needs to respond within seven (7) days from the date of such notification.

  • The approval of the application shall be subjected to GreenTech Malaysia’s successful evaluation. If approved, a Validation Letter will be issued. If not approved, GreenTech Malaysia will notify the Applicant with a Notification Letter.

  • GreenTech Malaysia issue the Validation Letter to the successful Applicant.

  • Applicant submits tax form to IRB together with the Validation Letter from GreenTech Malaysia for tax claim or declaration.

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