How solar energy service providers can get Tax exemptions in Malaysia
Green Investment Tax Allowance (GITA)
- This incentive allows companies to claim a tax allowance equivalent to 100% of the qualifying capital expenditure (QCE) incurred on green assets, such as solar panels.
- Up to 70% of this allowance can be offset against taxable income.
- This incentive encourages investment in renewable energy infrastructure and helps offset initial costs.
More Info Green Income Tax Exemption (GITE)
- This incentive is available for companies providing qualifying green technology services, including solar energy services.
- Eligible companies can enjoy a tax exemption of 70% of their statutory income for a period of three years.
- This incentive specifically targets service providers and encourages the growth of the green technology sector.
More Info Net Energy Metering (NEM) Program
- While not directly a tax exemption, the NEM program allows solar energy system owners to offset excess electricity generated against their consumption.
- This can lead to significant savings on electricity bills, indirectly contributing to the profitability of solar energy service providers.
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