source image: Tyler Casey

1. What is GITA? Understanding the Core Concept & How It Works

The Green Investment Tax Allowance (GITA) is a tax incentive introduced to encourage businesses to invest in green technology assets or projects listed under Malaysia’s MyHIJAU Directory. Companies may apply for GITA to offset qualifying capital expenditure (CAPEX) against their statutory income. The offset is generally capped at 70% of statutory income, with unused allowances carried forward to subsequent years if not fully absorbed.

2. Key Features and Updates for 2025

a. GITA Asset for Own Consumption & Business Purpose

From the 2024 revision, GITA now includes two primary categories:

• GITA Asset for Own Consumption – For assets used internally, such as solar systems and Battery Energy Storage Systems (BESS)

• GITA Project for Business Purposes – Covers broader green activities including solar, wind, and EV charging infrastructure

b. MyHIJAU Directory Requirement

Only assets approved by the Ministry of Finance and registered in the MyHIJAU Directory qualify for GITA 

c. New vs. Existing Assets

• New Asset Rule: Only newly acquired assets, owned and used by the business are eligible

• Existing Companies: May qualify if they have not previously benefited from 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 (e.g., Pioneer Status or Reinvestment Allowance)

3. Who Is Eligible for GITA?

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

• GITA Asset (Own Consumption): Company needs to own and use the qualifying asset internally and have incurred CAPEX between 1 January 2024 and 31 December 2026

• GITA Project (Business Purpose): Applicable for companies embarking on qualifying green tech projects, with CAPEX incurred post-application

4. Maximising Your GITA Benefit for Solar + BESS

a. Incentive Rates & Offset Rules

• Solar activity qualifies for 100% tax allowance of CAPEX, offsettable against 70% of statutory income

• BESS and Green Buildings enjoy similar incentives under Tier 1 classification

b. Application Process

• GITA Asset (Own Consumption): Submit applications to MGTC (not MIDA); must be within 24 months from CAPEX date

• GITA Project: Apply to MIDA, followed by technical review, and obtain effective dates for incentive calculation

c. Effective Incentive Period

Applications for GITA (both Asset and Project) are valid for expenses incurred from 1 January 2024 until 31 December 2026

d. Strategic Edge for Solar + BESS Investors

By combining solar PV systems with BESS under GITA:

• Businesses can unlock 100% CAPEX deduction, achieving accelerated tax savings.

• The 70% statutory income offset allows meaningful reduction in taxable income.

• Extra unused allowances can be carried forward, maximizing benefit across years.

5. Conclusion: GITA – A Catalyst for Malaysia’s Green Transition

GITA stands as a powerful tool aiding Malaysia’s shift toward a low-carbon economy. In 2025, with expanded eligibility, longer incentive periods, and inclusion of emerging green technologies like BESS, GITA is more relevant than ever. Businesses investing in solar PV and energy storage now stand to benefit from significantly enhanced tax relief — enabling greater financial viability and acceleration of green adoption.

Summary Table: GITA at a Glance