Solar Tax Incentives

MIDA Green Investment Tax Incentives


To strengthen the development of green technology, the Government will continue to provide incentives in the form of investment tax allowance for the purchase of green technology assets and income tax exemption for the use of green technology services and system.

Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on a green technology project from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020.

This allowance can be offset against 70% of statutory income in the year of assessment. If the allowance was unutilised, it can be carried forward until they are fully absorbed.

Projects that can be qualified for this are green energy projects that include renewable energy (RE), energy efficiency (EE), green building, green data centre and waste management.

As for the project applying to this incentive, it is applicable for companies that undertake qualifying green technology projects for business or own consumption.

Applications received by 31 December 2020 are eligible for this incentive. Applications should be submitted to MIDA.

Green Technology Asset Purchasing Tax Incentives


Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred on green technology asset from the year of assessment 2013 (date on which the first qualifying capital expenditure incurred is not earlier than 25 October 2013) until the year of assessment 2020. The allowance can be offset against 70% of statutory income in the year of assessment. Unutilised allowances can be carried forward until they are fully absorbed.

Applications received by 31 December 2020 are eligible for this incentive. Applications should be submitted to MGTC.

Capital Allowance (CA)

1. Initial Allowance (IA) of 20% for the first year.

2. Annual Allowance (AA) of 14% for subsequent years until the full amount has been accounted for.

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