Malaysian businesses can effectively pay zero tax on their solar investment through the Green Investment Tax Allowance (GITA). This significantly boosts commercial solar ROI.
How GITA Works
GITA allows a company to claim 100% of the Capital Expenditure (CAPEX) as a tax allowance. This allowance can be used to offset up to 70% of Statutory Income in a year.
Example Calculation
- System Cost: RM 500,000
- Corporate Tax Rate: 24%
- Tax Savings: RM 500,000 * 24% = RM 120,000
Effectively, the government pays for 24% of your system. Combine this with electricity savings of ~RM 15,000/month, and commercial payback periods often drop below 3 years. For a full breakdown of how GITA stacks with energy savings, see our commercial solar ROI analysis which includes payback period tables by system size and TNB tariff block.
Application Process (MIDA)
Applications must be made to the Malaysian Investment Development Authority (MIDA) before the project is commissioned. Trexon assists all corporate clients with GITA paperwork and MGTC validation. Manufacturing businesses in particular benefit most from GITA — our industrial solar guide covers how factories and warehouses can combine GITA with operational savings to achieve sub-3-year payback.
Ready to explore commercial solar for your business? Visit our commercial solar solutions page for office and retail projects, or our factory solar solutions page for industrial and manufacturing installations.