Tax incentive on Green Investment Tax Allowance (GITA) Assets

01Overview of GITA:

In Budget 2020, to further promote the use of green technology, the Government had extended the list of green assets, from 9 assets to 40 assets.

Here is a quick glimpse of what is GITA.

02Key takeaways:

I. Basic understandings of GITA Assets

II. Application procedures

03Summary of learnings:

I. Basic understandings of GITA Assets

04A) Who can claim?

A Company incorporated in Malaysia under the Companies Act 1965/2016.

05What can claim?

Any assets which are “qualified” under green technology. 40 kinds of assets are listed in the guideline.

Generally, the assets must incur for:

- minimize the degradation of the environment or reduce greenhouse emission

- promotes health and improvement of the environment

- conserves the use of energy, water, and/or other forms of natural resources

- promote the use of renewable energy

- able to recycle waste material resources

06C) How much to claim?

An additional 100% of qualifying capital expenditure can be offset against 70% of statutory income for the year.

The unutilized allowances can be carried forward until fully absorbed.

07D) When can I claim?

The period of purchase period must be made from 25 October 2013 until 31 December 2023.

08II. Application procedures

1. Apply Form (MGTC GITA/A Form) to Malaysian Green Technology or Climate Change Centre (MGTC))

2. Pay the processing fee and wait for verification.

3. Received MGTC Validation Letter.

4. Make your claim in the tax return form.

09Source:

Guidelines for Green Technology Tax Incentive (GITA/GITE)

https://www.myhijau.my/wp.../uploads/2021/02/REC-GTGT-007-

GUIDELINES-FOR-GREEN-TECHNOLOGY-TAX-INCENTIVE.pdf

Myhijau official website https://www.myhijau.my

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