GITA: The 60% Solar Tax Incentive Every Malaysian Company Should Claim Before Dec 31, 2026

Every year, Malaysian manufacturers and commercial building owners pay millions in corporate tax that they could legally reduce — simply by investing in a rooftop solar system and claiming the Green Investment Tax Allowance (GITA). Many business owners are not aware of it, so ask your tax agent whether it applies. And the window closes on 31 December 2026.

This guide covers exactly what GITA is, the verified 2026 rates and rules, a worked example for a real factory-scale system, how it differs from GITE and from normal capital allowances, and the step-by-step application process. All facts are sourced from the official MGTC Green Technology Tax Incentive Guidelines (April 2024).

If you are planning solar for factory roofs or a commercial solar installation for an office or retail building, GITA is the allowance that shortens the payback.

1. What Is GITA? (Full Explanation)

GITA stands for Green Investment Tax Allowance. It is a tax incentive under the Income Tax Act 1967, allowing Malaysian companies to claim an allowance on qualifying capital expenditure (capex) when they invest in approved green technology assets.

The allowance is set off against a portion of the company's statutory income each year, reducing the amount of income subject to corporate tax. Any unused allowance carries forward to subsequent years until fully absorbed — there is no arbitrary cap on carry-forward.

GITA covers two asset tiers under the April 2024 MGTC Guidelines. The tier relevant to solar PV for own consumption is:

2. GITA Worked Example: 240 kWp Commercial Solar System

How much can a company claim? A Malaysian company that buys solar PV for its own use can claim a GITA allowance of 60% of the qualifying capital expenditure. On a 240 kWp system at RM2,400 per kWp (RM576,000), that is RM345,600. It is set off against up to 70% of statutory income each year, and any unused allowance is carried forward until fully absorbed. At the standard 24% corporate rate, the tax saved once the allowance is fully used is RM82,944.

The figures below use Trexon's published commercial rate of RM2,400 per kWp and the GITA Asset rates in the MGTC 2024 Guidelines. The arithmetic is exact; what varies between companies is how quickly the allowance is absorbed, which depends on your statutory income. Your tax agent confirms the position for your accounts.

Scaled by System Size (Illustrative)

3. GITA vs GITE vs Normal Capital Allowance

Three different tax treatments are available for solar and green technology in Malaysia. Understanding which applies to your situation is critical before filing.

Key distinction from ATAP/NEM: GITA is a corporate tax incentive for the investment decision. Solar ATAP (Solar Accelerated Transition Action Programme) is a separate SEDA scheme that pays export credits when your solar panels send excess electricity to the grid. You can benefit from both simultaneously — GITA reduces your tax bill on the investment, while ATAP credits reduce your ongoing electricity bills. See our Solar ATAP 2026 guide for full ATAP details.

4. Who Qualifies for GITA (Eligibility Criteria)

The following criteria are drawn from the MGTC Green Technology Tax Incentive Guidelines (GITA Asset, April 2024). Your company must meet all of them:

A manufacturer claiming on its own plant can see how a system is sized and financed on factory and industrial solar installation; an office, hotel or retail owner should start with commercial solar installation in Malaysia.

5. GITA Application Process (Step by Step)

6. GITA + Solar ATAP + Green Financing — The Full Stack

Savvy Malaysian manufacturers combine three incentives simultaneously to maximise the financial return on a commercial solar investment:

Combining them: a factory finances a 240 kWp system (RM 576,000) through a green technology loan, claims RM 345,600 in GITA allowance — worth RM 82,944 in tax at 24% once fully absorbed — and keeps the electricity the system displaces on top. The after-tax cost of the system falls well below the sticker price.

See our full solar financing options guide and GITA tax filing service for details on how Trexon handles the MGTC documentation end to end.

7. GITA Common Questions (FAQ)

When is the GITA deadline, and does it apply to the application as well?

Both. The MGTC Guidelines (April 2024) require qualifying capital expenditure to be incurred between 1 January 2024 and 31 December 2026, and the guideline applies to applications submitted to MGTC within that same window. Because the application can only be submitted after the system is commissioned, in practice the system must be installed, commissioned and the application lodged before 31 December 2026. Installation typically takes six to ten weeks, so decide as early as possible. A Budget 2027 announcement may extend the window; until it does, plan for 31 December 2026.

Does GITA apply if I use a PPA / SPPA (zero-capex model)?

No. Under a Power Purchase Agreement or Solar Power Purchase Agreement, the solar company owns the equipment and you pay for electricity consumed. Since your company does not incur the capital expenditure or own the asset, you cannot claim GITA. To qualify for GITA, you must purchase the system outright or via a hire-purchase / bank loan where you hold beneficial ownership.

Can I claim GITA and normal capital allowance on the same asset?

The GITA allowance and normal capital allowance cannot be claimed on the same capital expenditure for the same year of assessment. However, you can claim GITA on the portion qualifying as green tech, and Reinvestment Allowance or other allowances on different assets — subject to the conditions in the MGTC Guidelines (Section 5.1(g)). Your tax agent should review the interaction carefully.

What happens if my company does not have enough income to absorb the full GITA in Year 1?

The MGTC Guidelines explicitly state: "Unutilised allowances can be carried forward until they are fully absorbed." There is no 5-year hard cap on carry-forward; the limit is only on the annual set-off (70% of that year's statutory income). This makes GITA particularly valuable for companies with variable income, as the benefit is not lost — it simply defers to profitable years.

What is the MGTC processing fee?

Per the MGTC 2024 Guidelines: RM 2,500 for total asset cost under RM 500,000; RM 4,000 for RM 500,000–1,000,000; RM 7,000 for RM 1,000,001–5,000,000; RM 10,000 for above RM 5,000,000. This is a one-time government processing fee, separate from any professional fees charged by your tax agent or solar installer.

Does my solar installer need to be SEDA-registered?

The MGTC Guidelines require that the green technology asset be used in business carried out in Malaysia and that equipment meets IEC standards (IEC 61215/61730 for modules, IEC 62109 for inverters). In practice, all SEDA-registered installers (Registered PV Service Providers) supply IEC-certified equipment. Trexon Energy is a fully SEDA-registered RPVSP with complete MGTC documentation workflows.

8. Sources

• MGTC, Green Technology Tax Incentive Guidelines — GITA Asset (approved 23 April 2024): the 60% Tier 2 rate for renewable energy systems, the 70% statutory income set-off, the 1 January 2024 – 31 December 2026 capital expenditure window, and section 7, which applies the guideline to applications submitted to MGTC from 1 January 2024 until 31 December 2026.
• MIDA, GITA Project for own consumption merged with GITA Asset: administration moved to MGTC from 1 January 2024.
• LHDN, company tax rates: 24% standard; SMEs 15% and 17% on the first RM600,000 of chargeable income.

Budget 2027 is expected in October 2026 and may change these terms; this page will be updated when it does. Figures here are arithmetic on published rates, not tax advice.