Understanding Malaysia’s GITA Programme in 2025

1. What is GITA? 

The Green Investment Tax Allowance (GITA) is a government initiative designed to encourage businesses to invest in green technology assets and projects listed under Malaysia’s MyHIJAU Directory.
Through GITA, companies can offset qualifying capital expenditure (CAPEX) against their statutory income, up to 70%, with any unused allowances carried forward to subsequent years.

2. Key Features and Updates 

a. GITA Asset for Own Consumption & Business Purpose
Starting from the 2024 revision, GITA is divided into two main categories:

• GITA Asset (Own Consumption): For internal use of assets such as solar PV systems and Battery Energy Storage Systems (BESS).

• GITA Project (Business Purpose): Covers broader green activities including solar, wind, and EV charging infrastructure.

b. MyHIJAU Directory Requirement
Only assets that are approved by the Ministry of Finance and registered under the MyHIJAU Directory are eligible for GITA incentives.

c. New vs. Existing Assets

• New Asset Rule: Only newly acquired and owned assets used by the business qualify.

• Existing Companies: May still be eligible if they have not previously received similar incentives or are undertaking expansion/diversification within the incentive period.

d. Mutual Exclusivity
GITA cannot be combined with other tax incentive schemes for the same asset — such as Pioneer Status or Reinvestment Allowance.

3. Who Is Eligible for GITA?

To qualify for GITA, applicants must:

• Be a new or existing company incorporated under the Companies Act 2016, operating in Malaysia.

• For GITA Asset (Own Consumption): The company must own and use the qualifying asset internally, with CAPEX incurred between 1 January 2024 and 31 December 2026.

• For GITA Project (Business Purpose): Applicable to companies undertaking qualifying green technology projects, with CAPEX incurred after the application date.

4. Maximising Your GITA Benefit for Solar + BESS

a. Incentive Rates & Offset Rules

• Solar PV systems: Eligible for 100% tax allowance on CAPEX, offset against 70% of statutory income.

• BESS and Green Buildings: Enjoy similar benefits under Tier 1 classification.

b. Application Process

• GITA Asset (Own Consumption): Apply through MGTC (not MIDA); must be submitted within 24 months from the CAPEX date.

• GITA Project: Apply through MIDA, followed by a technical review and approval for incentive commencement.

c. Effective Incentive Period
Valid for qualifying expenses incurred between 1 January 2024 and 31 December 2026.

d. Strategic Advantage for Solar + BESS Investors
By leveraging GITA:

• BESS installations enjoy a 100% CAPEX deduction, accelerating tax savings.

• Solar PV systems qualify for a 60% CAPEX deduction, reducing upfront costs.

• Combined Solar + BESS projects are also eligible for a 60% CAPEX deduction.
  Additionally, the 70% statutory income offset allows companies to reduce taxable income significantly, while unused allowances can be carried forward for future years — maximizing long-term benefits.

5. Conclusion: GITA – Powering Malaysia’s Green Transition

The Green Investment Tax Allowance (GITA) plays a vital role in driving Malaysia’s transition toward a low-carbon and sustainable economy.
With broader eligibility, extended incentive periods, and inclusion of emerging technologies like BESS, GITA 2025 provides stronger support for businesses investing in solar PV and energy storage.
This incentive not only reduces financial burden but also accelerates the adoption of green technology — creating a cleaner and more resilient future for Malaysia.

#makeeverylifebloom#solarmalaysia#solaris#tnb#ThankYou #AmiyaEnergy#SolarATAP #AmiyaEnergy #MalaysiaSolar #RenewableEnergy #GoGreenMalaysia #JimatElektrik #CleanEnergy #SustainableLiving #MalaysianHomes#GITAIncentive