GITA 60% Tax Allowance 2026: The Dec 31 Deadline Every Malaysian Manufacturer Must Know
⏰ GITA 2026 Deadline: December 31, 2026.
Solar systems must be commissioned and the application submitted to MGTC before this date to qualify. The application is submitted after commissioning.
Key Takeaways
- • GITA (Green Investment Tax Allowance) gives manufacturers a 60% tax allowance on qualifying solar capex — set off against up to 70% of statutory income each year, with the balance carried forward.
- • A factory spending RM500,000 on solar receives a RM300,000 GITA allowance (tax saved RM51,000–RM72,000).
- • The GITA deadline for solar is December 31, 2026 — installations must be commissioned and the application submitted before this date.
- • GITA Asset is verified by MGTC (Malaysian Green Technology and Climate Change Corporation) via MyHIJAU, NOT LHDN or MIDA — your tax agent claims the allowance separately.
- • Trexon handles all GITA documentation: MGTC application documents, electrical drawings (endorsed by an appointed Professional Engineer only where Suruhanjaya Tenaga requires it), commissioning reports (IEC 62446).
If you own or manage a factory, warehouse, or commercial premises in Malaysia, there is a government incentive worth hundreds of thousands of ringgit sitting on the table — and it expires on December 31, 2026. It is called the Green Investment Tax Allowance (GITA).
This article breaks down exactly what GITA is, who qualifies, how to calculate your savings, and what you need to do before the year-end deadline.
For manufacturers, the fastest route to a claim is a factory solar system on your own plant roof, or larger industrial solar installations for multi-building sites.
1. What Is GITA? (Simple Explanation)
GITA stands for Green Investment Tax Allowance. Under section 127(3)(b) of Malaysia's Income Tax Act 1967 (GITA Asset, administered by MGTC), companies investing in qualifying green technology assets — including solar PV systems — receive a 60% tax allowance on the qualifying capital expenditure.
This allowance is set off against up to 70% of your company's statutory income each year, with any unused balance carried forward until it is fully absorbed. In plain terms: a big chunk of your solar investment reduces the income that gets taxed.
Unlike a rebate or grant, GITA does not give you cash back. Instead, it shields a portion of your income from corporate tax — which for most manufacturers is 17% (SME) to 24% (large company). When you run the numbers, the effective savings are substantial.
2. GITA Calculation — Real Numbers
Example: RM500,000 Factory Solar System
| Item | Value |
|---|---|
| Solar System Cost | RM 500,000 |
| GITA Allowance (60%) | RM 300,000 |
| Set off against statutory income | Up to 70% / year |
| Total tax saved (17% SME rate) | RM 51,000 |
| Total tax saved (24% large co.) | RM 72,000 |
| Total tax savings once fully absorbed | RM 51,000 – RM 72,000 |
| Net effective cost of solar system | RM 428,000 – RM 449,000 |
* This is tax allowance, not a direct grant. Actual savings depend on your company's taxable income and applicable tax rate. Consult your tax agent for precise calculations.
Scaled Comparison: 3 Factory Sizes
GITA Savings by System Size
| System Size | Capex | GITA Allowance | Tax Saved (24%) |
|---|---|---|---|
| Small Factory (~70kWp) | RM 168,000 | RM 100,800 | RM 24,192 |
| Medium Factory (~208kWp) | RM 500,000 | RM 300,000 | RM 72,000 |
| Large Factory (~500kWp) | RM 1,200,000 | RM 720,000 | RM 172,800 |
3. Who Qualifies for GITA?
To be eligible for the Green Investment Tax Allowance on solar, your company must meet all of the following criteria:
- Malaysian-incorporated company — must be a Sdn Bhd or Bhd (not sole proprietorship or partnership).
- Own business premises — the solar system must be installed on your factory, warehouse, or office. You cannot claim GITA for a rented building (though a long-term tenancy agreement with landlord consent may be considered).
- Commissioned and submitted by December 31, 2026 — the system must be fully operational and the application submitted to MGTC. Partial completion does not qualify.
- GITA Asset application submitted to MGTC after commissioning — the asset must be verified by MGTC and listed on MyHIJAU.
- SEDA-registered installer — the solar contractor must be a registered PV Service Provider (RPVSP) under SEDA Malaysia. Trexon Energy is a SEDA-registered RPVSP (SEDA-RPVSP-2026/373).
- System meets IEC standards — equipment must comply with IEC 61215, IEC 61730 (modules) and IEC 62109 (inverters). All Trexon-supplied equipment is IEC-certified.
Minimum system size: There is no official minimum, but GITA is economically meaningful for systems of 50kWp and above (about RM120,000 in capex at RM2,400/kWp). Below this threshold, the administration effort may not justify the tax savings. See our industrial solar systems page for typical sizing for manufacturing plants.
4. GITA vs Normal Capital Allowance — How They Compare
Tax Treatment Comparison: RM500,000 Solar Investment
| Factor | GITA (Green) | Normal Capital Allowance |
|---|---|---|
| Allowance rate | 60% of capex | 20% initial + 14% annual |
| Total years to full claim | Until fully absorbed | About 6 years |
| Allowable deduction (Year 1) | Up to 70% of statutory income | RM 170,000 (initial 20% + annual 14%) |
| Total allowable deduction | RM 300,000 | RM 500,000 (over about 6 years) |
Illustrative comparison only; the GITA column covers the 60% GITA allowance, so the two totals are not like-for-like. GITA and ordinary capital allowance cannot both be claimed on the same capital expenditure for the same year of assessment — confirm which applies to your project with your tax agent.
5. How to Apply for GITA — Step by Step
Step 1: Get a GITA-Ready Quotation from Trexon
The GITA Asset application relies on itemised invoices and equipment details. Trexon prepares GITA-ready proposals that include the correct itemized breakdown, equipment specifications (make, model, IEC certification), and technical parameters needed for the MGTC application.
Step 2: Know Who Verifies GITA (MGTC) — and When
The application is submitted to MGTC (Malaysian Green Technology and Climate Change Corporation) — not LHDN, and not MIDA. This is a common misconception. LHDN processes your annual tax return, but the GITA Asset confirmation comes from MGTC. You submit the application after your system is commissioned, and it must be submitted by 31 December 2026.
Step 3: Trexon Completes the Installation
Trexon schedules and completes the installation. Upon commissioning, we provide the IEC 62446 Commissioning Report, the technical certificate confirming the system is operational and compliant. Keep it with your invoices for the MGTC application.
Step 4: Submit to MGTC and Receive Confirmation
Trexon prepares the application documents and the GITA Asset application is submitted to MGTC through MyHIJAU. MGTC verifies the asset and confirms the qualifying allowance — subject to MGTC verification. Keep the confirmation in your company records permanently; your tax agent uses it to claim the allowance.
Step 5: Annual GITA Claims via Your Tax Agent
Each year, your tax agent claims the GITA allowance in your company's income tax return. The 60% allowance is applied against up to 70% of your statutory income annually until the full amount is utilized. No further action is needed from MGTC after its confirmation.
6. Why December 31, 2026 Is a Hard Deadline
The current GITA incentive for solar and green technology assets runs under the MGTC GITA Asset guideline (23 April 2024) through December 31, 2026. Budget 2027 (tabled 9 October 2026) proposes extending GITA Asset to purchases verified by MGTC up to 31 December 2030, but standalone solar is not on the proposed list. Solar integrated with battery storage would qualify at 100% of qualifying capex, set off against up to 70% of statutory income, with the application made within 24 months of purchase. These are proposals, subject to legislation and not yet gazetted.
After December 31, 2026, the incentive may not be renewed, or may be reduced in scope. Treat 31 December 2026 as a hard deadline and do not plan around an extension.
Factories that miss this window do not simply get a smaller incentive — they lose the 60% allowance entirely. For a RM1.2M system, that is RM172,800 in GITA tax savings forgone. A potential RM172,800 loss — simply by delaying.
Timeline Reality Check
The whole process, including TNB approval and commissioning, takes several weeks: about 6–10 weeks for a typical system, and often longer for large ones. Then submit to MGTC after commissioning. Start your GITA project as early as possible so the system is commissioned and the application submitted before December 31.
7. Trexon's GITA Documentation Package
Trexon Energy provides the documents you need for your MGTC application and annual tax claims:
- Itemised GITA Quotation — correct item codes, equipment specs, and project scope for the MGTC application.
- Single-Line Diagrams — electrical drawings for your system, endorsed by a Professional Engineer where Suruhanjaya Tenaga requires it.
- SEDA RPVSP Certification Letter — confirming Trexon is a registered PV Service Provider under the Sustainable Energy Development Authority.
- IEC 62446 Commissioning Report — post-installation technical certificate confirming system performance and compliance.
- Support for Your Tax Agent — we provide the invoices and equipment specifications your tax agent needs for the annual claims.
This reduces the paperwork your team has to assemble for GITA.
Calculate Your GITA Tax Savings
Our commercial team will calculate the exact GITA allowance for your factory size and walk you through the full ROI — including energy savings, GITA savings, and depreciation benefits.
