In tandem with the Malaysian Government’s agenda to drive the growth of Malaysia’s green economy, an announcement of green technology tax incentives in the Budget 2014 has been introduced where GreenTech Malaysia has been mandated to commence and verify on the Green Technology Incentives been offered.
The purpose of this incentive is to strengthen the development of green technology through Green Investment Tax Allowances (GITA) for the purchase of green technology equipment/assets and Green Income Tax Exemption (GITE) for green technology service providers.
WHY THE INCENTIVES
CATEGORY OF GREEN INCENTIVES
Green Technology Tax Incentives divided into two categories as follows:
QUALIFYING ACTIVITIES FOR GITA ASSET
Details of the session are as follows:
|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|
|9||Infrastructure||Electric Vehicle (EV) charging equipment/system|
QUALIFYING ACTIVITIES FOR GITA PROJECT
List of Qualifying Activities for GITA Project are as follows:
|1||Renewable Energy||Commercial and industrial business entities which undertake generation of energy using renewable energy resources such as :
• Mini Hydro
• Solar power
Note: Projects which have been approved with Feed-in Tariff (FiT) for solar by the Sustainable Energy Development Authority (SEDA) are not eligible for the incentive.
|2||Energy Efficiency||Companies investing in energy efficiency equipment or technologies and invest in energy saving equipment.|
|3||Green Buildingy||Building owners of the commercial/industrial building that have been awarded green building certificates from locally developed rating tool/certification body approved by the Government.|
|4||Green Data Centre||Companies that purchased any energy efficient product or solution for data centre which have been awarded green building certificates from locally developed rating tool/certification body approved by the Government.|
|5||Waste Management||Companies which undertake/invest in waste recycling or waste recovery or waste treatment and additional activities such as composting or store or collection or disposal.|
QUALIFYING ACTIVITIES FOR GITA SERVICES
List of Qualifying Activities for GITE Services are as follows:
|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)||(i) Services related to installation, maintenance and repair of EV charging equipment, infrastructure and EV charging station.
(ii) Services related to operation of the EV charging station.
(iii) 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.|
For more detailed information, please download the guideline below:
• Download Green Incentives Guidelines.
Processing fee to be charged to the applicants is based on the following table:-
|Type of Tax Incentives||Description||Processing Fee (RM)|
|GITA Assets*||For each green technology asset
(refer to item 4.2 below)
– Total Cost for Equipment/Machinery**
|Less than 500,000||2500|
|500,000 – 1,000,000||4000|
|1,000,001 – 5,000,000||7000|
|More than 5,000,000||10,000|
|GITE Services||For each application||2,000|
Note*- Application with more than one equipment/assets with different MyHIJAU Mark registration must be applied separately.
Note**- The determination of the total cost for equipment/machinery shall be as stated in Section C, Column I. Investment; item no. (iii) and (iv) in the MIDA GT/JA Form.
GST charges are excluded.
All processing fees must be paid upfront upon application.
PROCEDURE OF APPLICATION
The application for GITA Asset should be submitted to:
Group Chief Executive Officer
Malaysian Green Technology Corporation (GreenTech Malaysia)
No. 2, Jalan 9/10
Persiaran Usahawan, Seksyen 9
43650, Bandar Baru Bangi
Please click the link to download the form. Application Form-Gita Asset
The application for GITA Project and GITE Services should be submitted to:
Chief Executive Officer
Malaysian Investment Development Authority (MIDA)
MIDA Sentral, No. 5
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
(Attn.: Director, Clean Technology and Environment Management Division)
Access from MIDA website under C) Tax Incentive for Purchase of Green Technology Assets.
Please click the link to download the form. Form GT/JA