In Budget 2020, the Malaysian Government had announced the extension of Green Investment Tax Allowance (GITA) for the purchase of green technology assets and Green Income Tax Exemption (GITE) on the use of green technology services and system.
Both MIDA and MGTC have since published updated guidelines for the extension of said tax incentives.
Here are important updates you should know regarding the updated guidelines:
- The tax incentive period for both GITA and GITE has been extended a further 3 years. Thus, this incentive ends 31st December 2023
- Projects under MyCREST certification are entitled for both GITA and GITE
- GITA Projects must be carried in a span of 3 years. Time period starts from the date of first qualifying capital expenditure (CAPEX) incurred
- For GITA Projects, application to MIDA must be done before any CAPEX is spent
- Projects applying for GITA Projects under Green Building category (GBI, GreenRE) must submit GITA application to MIDA with a provisional green building certificate. This could be in the form of GBI’s Design Assessment certificate or GreenRE’s Actual Assessment certificate. Application will not be considered without a provisional certificate
- For projects applying for GBI Projects under Green Building category, qualifying capital expenditure can be backdated not earlier than 3 years from the date of application received by MIDA but not earlier than 1 January 2020.
- For GITE, period of incentive is for 3 years starting from assessment year of the first invoice related to green technology services issued
References:
- The Star Online. Budget 2020: Green tax exemptions extended to 2023. Retrieved from: https://www.thestar.com.my/news/nation/2019/10/11/budget-2020-green-tax-exemptions-extended-to-2023
- MyHijau. Green Incentives. Retrieved from: www.myhijau.my/green-incentives
