® INNOVATING A
BETTER FUTURE
TOGETHER
IP ONLINE COLLEGIUM MEETING

GOVERNMENT TAX INCENTIVES IN
GREEN TECHNOLOGY
7 DECEMBER 2020
Prepared & Delivered by

SHERRY BINTI SOKMUMIntellectual Property Services©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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GOVERNMENTPOLICY©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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National Biofuel
Policy 2006

Government Green
Procurement by
MGTC

GOVERNMENT POLICY

National GreenTechnology Policy
2009
By KeTTHAMyHIJAU Mark

©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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GOVERNMENT POLICYGreen Technology
Master Plan Malaysia
2017-2030
By MOSTI©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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GOVERNMENT POLICY

National Renewable
Energy Policy &Action Plan, Feed inTariff

Non- Revenue Water
Action Plan &Reduction Program
2008 by SPAN

Malaysian Biomass
Industry Action Plan
2020

National Automotive
Policy 2014

Four- Fuel
Diversification Policy

Green Investment
Tax Allowance 2014
by MIDA©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVESFOR GREENTECHNOLOGY©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVES FOR GREEN TECHNOLOGYGreen Investment Tax
Allowance (GITA)
AssetsGreen Investment Tax
Allowance (GITA)
Projects

Green Investment Tax
Exemption (GITE)
Services

For companies that
acquire qualifying GT
assets & are listed
under MyHijau
Directory

For companies that
undertake qualifying
GT projects forbusiness or own
consumption

For qualifying GT
service provider
companies that arelisted under MyHijau
Directory

New Tax Incentive Mechanisms (2016-2020)©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVES FOR GREEN TECHNOLOGYINCENTIVE FOR SOLAR ACTIVITIES➢ An income tax exemption of 70% of statutory
income for a period of up to 10 years ofassessment➢ Be given to companies undertaking solar leasing
activities certified by the Sustainable Energy.
➢ Applications for this incentive can be made to
MIDA from 1 January 2020 to 31 December
2023.
©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVES FOR GREEN TECHNOLOGYGOVERNMENTGREEN
PROCUREMENT©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVES FOR GREEN TECHNOLOGYGREEN TECHNOLOGY FINANCING SCHEME
FOR PRODUCERSFOR USERSFOR ESCOS©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVESFOR INTELLECTUAL
PROPERTY©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVES FOR IP
A double deduction
for R&D
contributions toapproved research
institutions or
expenditure

A double deduction
for in-house R&D
expenditureapproved by the IRB

A tax deduction forthe cost ofacquisition ofproprietary rights

TAX INCENTIVES FOR
DEVELOPMENT OF IP
An income tax
exemption for R&D
contract companies
that provide R&D
services

An income tax
exemption forcompanies thatcommercializeresource-based &non-resource-based
R&D findings©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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TAX INCENTIVES FOR IP

TAX EXEMPTION FOR PATENT & SOFTWARE

100% tax exemption for up
to 10 years on the income derived
from Qualifying Intellectual
Property (development of patentsand copyright software)

The Modified Nexus Approach will beapplied to ensure that only IP
developed in Malaysia qualifies forincome tax exemption and applicationmust be submitted to MIDA from 1
January 2020 to 31 December 2022

©2020 PlaTCOM Ventures Sdn. Bhd. All rights reserved.

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