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

Features for GITA Services

FEATURES

DESCRIPTION

Eligibility

  • Green Income Tax Exemption given to qualifying companies which provides green technology services which have been verified by GreenTech Malaysia and been listed under the MyHIJAU Directory.

  • For a company which undertakes green technology services activities, the company must meet the criteria of green technology service providers as follows:

    1. At least one competent/qualified personnel in the respective green technology*;

    2. Must have a green policy related to the environmental or sustainability**; and

    3. 100% income must be derived from the respective green technology services.

      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.

  • The application must be submitted to MIDA before 31 December 2020.

Rate of incentive

  • 100% of statutory income from the date of application received by MIDA until the year of assessment 2020 (maximum period is 5 years from the date of commencement).

Interpretations

  • Qualifying company means a company which is incorporated under the Companies Act, 1965 and a resident in Malaysia and provides approved green technology services which have been verified by GreenTech Malaysia.

  • This incentive would not be applicable to existing green technology services before the date of commencement (25th October 2013).

Commencement date

  • Depending on the nature of the business activity, the commencement date for the incentive shall be determined by MIDA (up to the year of assessment 2020).

Other key features

  • Companies would be allowed to enjoy this income tax exemption and other incentives (e.g. reinvestment allowance, ITA and GITA) in relation to different business activities.

  • This incentive and GITA (Asset and Project) are mutually exclusive in relation to the same business activity.

Conditions

  • Companies must obtain verification from GreenTech Malaysia and listed under the MyHIJAU Directory.

  • Companies would need to have at least one (1) competent/qualified personnel in the respective green technology services throughout the incentive period.

  • Companies must have policy related to the environmental or sustainability.

  • Companies’ income must be 100% from the respective green technology services.

List of Qualifying Services

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

ACTIVITIES

1

Renewable Energy

Services related to renewable energy project such as system design and feasibility study, advisory and consultancy, testing and commissioning.

2

Energy Efficiency

Services related to energy efficiency such as advisory and consultancy, energy audit and management, measurement and verification, testing and commissioning.

3

Electric Vehicle (EV)

  1. Services related to installation, maintenance and repair of EV charging equipment, infrastructure and EV charging station.

  2. Services related to operation of the EV charging station.

  3. Services related to maintenance, repair and overhaul of EV.

4

Green Building

Services related to testing and commissioning of green building equipment and system, and services related to green building design and consultancy services.

5

Green Data Centre

Services related to system design and feasibility study, advisory and consultancy, testing and commissioning of green data centre or ICT infrastructure.

6

Green Certification and Verification

Services related to green certifications of products, equipment and buildings.

7

Green Township

Services related to advisory and consultancy, design and feasibility study in Green Township and low carbon cities planning.

Schematics of the Application Process

PROCESS

DESCRIPTION

  • Applicant must check the qualifying activities with MIDA or GreenTech Malaysia.

  • Applicant submits an application to MIDA with the MIDA GT/JA form (Refer to website at www.mida.gov.my).

  • MIDA will request further information for uncompleted application.

  • MIDA process and evaluate the application based on the available information related to green technology services as provided by the Applicant.

  • MIDA prepare an Evaluation Report to be presented during the National Committee on Investment (NCI), MIDA.

  • MIDA present the Evaluation Report during NCI for approval. If approved, a Conditional Letter will be issued. If not approved, MIDA will issue a Rejection Letter to the Applicant.

  • MIDA issue the Conditional Letter of Approval to the successful Applicant.

  • Applicant submits the certified true copy of application form (MIDA GT/JA), the Conditional Letter and supporting documents to GreenTech Malaysia for the validation of green technology service provider.

  • GreenTech Malaysia receive the application form with the Conditional Letter and supporting documents from MIDA. Processing fee (RM2,000 per application) must be received upfront by MGTC via online banking, cash deposit or bank draft.

  • GreenTech Malaysia screen all the documents and information for the validation of green technology service provider. If the information or supporting documents provided are incomplete, the Applicant will be notified via email. The Applicant needs to respond within fourteen (14) days from the date of such notification.Note: The Applicant must be registered under the MyHIJAU Mark Service for tax eligibility.

  • The approval of the application shall be subjected to GreenTech Malaysia’s successful validation. 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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