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.
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.