Revolutionize Green Investments: Proposed Improvements to Tax Incentives
There are also tax deductions for companies that rent EVs. These improvements are part of initiatives by GENTARI and TNB, and applications for the incentives will be accepted by MIDA from 1 January 2024 to 31 December 2025.
The Budget 2023 made provisions for the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) incentives and proposes improvements to these initiatives.
The proposed improvements include expanding solar activity incentives to include Battery Energy Storage Systems (BESS), installing solar panels at government facilities and commercial buildings by 2024, providing 500 units of EV charging facilities throughout the country, and offering tax incentives to support the use of EVs.
These tax incentives include exemption of import duties on components for assembly of EVs, exemption of excise duty and sales tax on installed EVs, and 100% income tax exemption on statutory income for manufacturers of EV charging equipment.
There are also tax deductions for companies that rent EVs. These improvements are part of initiatives by GENTARI and TNB, and applications for the incentives will be accepted by MIDA from 1 January 2024 to 31 December 2025.
The Main Tax Incentives for EVs:
Review and improve Green Investment Tax Allowance incentives (GITA) and Green Income Tax Exemption (GITE)
• Improved solar activity incentives to include Battery Energy Storage System (BESS)
• Applications are accepted by MIDA from 1 January 2024 to 31 December 2025 10. Initiative by GENTARI
• Installation of solar panels at Government facilities and commercial by 2024
• Provision of 500 units of EV charging facilities throughout the country 11. Initiative by TNB
• Solar rooftop installation at Government buildings in Putrajaya (RM75 j)
• Installation of EV charging facilities at 70 focal locations (RM90 j) 12. Tax incentives support the use of EVs
• Exemption of import duties on components for assembly EVs local extended until December 31, 2027
• Exemption of excise duty and sales tax on installed EVs local CKD extended until December 31, 2027
• Exemption of import duty and excise duty on CBU EVs extended until December 31, 2025
• 100% income tax exemption on statutory income manufacturers of EV charging equipment from assessment year 2023 to assessment year 2032 and 100% Investment Tax Allowance for period 5 year
• Tax deductions to companies that rent EVs with the amount the maximum eligible rental amount is limited to not more than 300 thousand
NOTE: It is a direct translation from Bahasa Malaysia
Kazi Mahmood
