ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
Green Investment Tax Allowance ( GITA ) Assets
Applicable for companies that acquire qualifying green technology assets and listed under the MyHIJAU Directory .
SCOPE OF GREEN TECHNOLOGY TAX INCENTIVE
Green Investment Tax Allowance ( GITA ) Projects
Applicable for companies that undertake qualifying green technology projects for business or own consumption .
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Green IncomeTax Exemption ( GITE ) Services
Applicable for qualifying green technology service provider companies that are listed under the MyHIJAU Directory . demand by 2025 across residential , commercial , and industrial sectors , with a further 15 per cent reduction in electricity consumption by 2030 .
• Waste Management : Target a 28 per cent recycling rate by 2030 .
• Manufacturing : Increase the number of green manufacturers to 17,000 by 2030 .
• Building : 1,750 green buildings certified by 2030 .
Green Technology Tax Incentives
Introduced since 2014 during the government ’ s Budget announcement , the Green Investment Tax Allowance ( GITA ) and Green Income Tax Exemption ( GITE ) align with the Malaysian government ’ s commitment to fostering the growth of Malaysia ’ s green economy . Managed by the Malaysian Green Technology and Climate Change Corporation ( MGTC ), these initiatives aim to achieve several objectives : i . Encouraging investment in the green technology industry on a project basis , whether for business purposes or self-consumption , and promoting the adoption of green technology by selected services / system providers . ii . Encouraging companies to acquire / purchase assets verified as green technology assets by MGTC , listed under the MyHIJAU Directory . iii . Widening the coverage of green services to include solar leasing activities .
These incentives fall into two main categories : Green Investment Tax
Allowance ( Asset & Project ) and Green Income Tax Exemption ( Service Provider ).
GITA : GITA is accessible to companies that own registered assets used in their Malaysian business operations . These assets must be listed in the MyHijau directory and approved by the Ministry of Finance through MGTC confirmation . Upon approval , a validation letter is issued , allowing companies to claim a 100 per cent offset of qualifying capital expenditure against 70 per cent of statutory income in the assessment year . The claimed amount is then included in the tax return form .
GITE : The eligibility is extended to qualifying green technology service providers listed in the MyHIJAU Directory .