1. ENERGY EFFICIENCY INCENTIVES

A. Companies Providing Energy Conversation Services:

•    Pioneer status with tax exemption of 100% of statutory income for a period of 10 years:or

•    Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within a period of 5 years with the allowance deducted in each year of assessment be set-off against  100% of statutory income; and

•    Import duty and sales tax exemption on equipment used in energy conservation which are not produced locally. Equipment purchased from local manufacturers is given sales tax exemption.

B.  Company who did capital expenditure for energy retrenchment purpose for own use

•    Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within a period of 5 years with the allowance to be set off against 100% of statutory income for each year of assessment.

•    Import duty and sales tax exemption on equipment used in energy conservation which are not produced locally. Equipment purchased from local manufacturers is given sales tax exemption.

C. Company which  import  EE equipment or buy it  from local manufacturers for third party use

•    Import duty and sales tax exemption on EE equipment such as high efficiency motors and insulation materials given to importer including agent that accredited approved by Energy Commision; and

•    Sales tax exemption given on EE consumer’s buying goods such as refrigerator, air conditioner, light, fan, and television which produced by local manufacturer;

•    Incentive is applicable for applications received by the Ministry of Finance from 30 August 2008 until 31 December 2010.

2. INCENTIVES FOR THE USE OF RENEWABLE ENERGY RESOURCES

A. COMPANIES GENERATING ENERGY FROM RENEWABLE SOURCES :

•    Pioneer status with tax exemption of statutory income for a period of 10 years or Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within a period of 5 years with the allowance deducted each year of assessment to be set off against 100% of statutory income for each year of assessment; and

•    Equipment used for the project will be given import duty and sales tax exemption if not produced locally. Equipment purchased from local manufacturers will be given sales tax exemption.

•    Another company which in same group were given Status Pioneer or Investment Tax Allowance as above eventhough one of the company in that group have gotten tax incentives.

 
 B. COMPANIES GENERATING ENERGY FROM RENEWABLE SOURCES FOR OWN USE:

•    Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within 5 years with the allowance deducted each year of  assessment  to be set off against 100% for each year of assessment;

•    Companies not generating energy which import or accuire equipment generate energy from renewable sources for third party use such as housing developer or building owner have not been given tax incentive.

C.    COMPANIES WHICH IMPORT SYSTEM EQUIPMENT SOLAR PHOTOVOLTAIC FOR THIRD PARTY USE OR PURCHASE HEATING SYSTEM EQUIPMENT SOLAR FROM LOCAL MANUFACTURER. 

•    Import duty and sale tax exemption on photovoltaic solar system equipment  for third party use was given to importer including service provider photovoltaic approved by Commision Energy; and

•    Sale tax exemption given on system equipment purchase heating solar from local manufacturer.

•    This incentives applicable for applications received by Ministry of Finance(MOF)  from 30 August 2008 until 31 Dicember 2010.

4.    INCENTIVES FOR GREEN BUILDING.

i.    Any person who incurs qualifying expenditure  to obtain GBI certification  for a building used for his business qualifies for tax exemption which is equivalent to 100% of the amount of qualifying expenditure and is allowed to be set-off against 100% of the statutory income for each year assessment.

ii.    This tax exemption is give only once for buildings awarded GBI certificate from 24 October 2009 until 31 Dicember 2014.

iii.    Buyers buildings and residential properties awarded GBI certificates acquired from property developers are eligible for stamp duty exemption on instruments of transfer of ownership of such buldings. The amount of exemption is on the additional cost incurred to obtain the GBI certificate. The exemption is given only once for the first transfer of ownership of the building and for sales and purchase agreements executed from 24 October 2009 until 31 Dicember 2014.

 HOW TO APPLY FOR THE INCENTIVES
The application should be submitted to :

Malaysian Industrial Development Authority
Block 4, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia.