A Look at the Financial Incentives for Green Buildings in Malaysia (GITA/GITE)

Reading Time: ~10 minutes

Key Takeaway: Understanding how to leverage the incentives in “A Look at the Financial Incentives for Green Buildings in Malaysia (GITA/GITE)” can significantly boost your ROI and make your next green-building project more financially viable.

Introduction

Problem: You’re ready to build or retrofit a green building in Malaysia—but the upfront cost is high and the business case needs to stack up.
Agitation: Without strong financial incentives, the project can look risky, and you might miss out on savings or competitive advantage.
Solution: This article, “A Look at the Financial Incentives for Green Buildings in Malaysia (GITA/GITE)”, walks you through the key incentives, how they work, and how to apply them—so your green-building plan becomes a smart financial move.
Summary Box:

• What are GITA & GITE?

• How they apply to green buildings

• Eligibility criteria & timelines

• How to claim and use them

• Practical tips to benefit from the incentives

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A Look at the Financial Incentives for Green Buildings in Malaysia (GITA/GITE)

Let’s break it down in plain language.

What are GITA and GITE?

• Green Investment Tax Allowance (GITA): A tax allowance given to companies investing in qualifying green-technology assets or green projects, including green buildings. GreenTech Malaysia+2GreenTech Malaysia+2

• Green Income Tax Exemption (GITE): A tax exemption given to service providers or green-technology service activities, including where relevant in green buildings and solar leasing. conwallci.com+2myhijau.my+2

How do these apply to green buildings?

• Under GITA “Asset for Own Consumption”, green buildings are listed as qualifying assets for the allowance. Mondaq+2GreenTech Malaysia+2

• For example, the 2024 Budget revision shows that a green building (as a qualifying asset) can get 100% GITA to be set off against 70% of statutory income, for expenditure incurred from 1 Jan 2024 to 31 Dec 2026. Acclime Malaysia+1

Key features of the incentives

• Qualifying capital expenditure (CAPEX) must be incurred within the specified period (e.g., 1 Jan 2024 to 31 Dec 2026 for many assets) to qualify. Mondaq+1

• The asset or project must be approved as qualifying, often listed in the Malaysian Green Technology and Climate Change Corporation (MGTC) / MyHIJAU directory. GreenTech Malaysia+1

• With GITA you offset the tax by using the allowance to reduce taxable statutory income; with GITE you get exemption of a portion of statutory income for certain services.

Why green-building projects specifically benefit

• Green buildings typically involve energy-efficiency systems, sustainable materials, maybe solar PV, better insulation—many of which are covered under green technology assets/projects.

• Because of the financial incentive, the pay-back from the investment is improved: lower tax + operational savings = stronger business case.

• The government’s push toward sustainability and “net-zero by 2050” means policy support is stronger, making timing favourable. MIDA

Eligibility and process (straightforward steps)

• Check that your green building project qualifies: the assets or technology involved must be in the approved list (MyHIJAU etc). Sistem Transportasi

• For GITA (Asset for Own Consumption): ensure the expenditure is incurred in the eligible period (1 Jan 2024 – 31 Dec 2026). GreenTech Malaysia

• Submit application to the correct agency (MGTC for many assets). BusinessToday

• After approval, claim the allowance/exemption in your tax computation.

• Maintain documentation: CAPEX, asset approvals, certification of green building rating if required, etc.

What the numbers look like

• Example: For a green building project where CAPEX is incurred in 2024, the company may claim 100% of that CAPEX under GITA, then offset up to 70% of its statutory income in that year. MIDA

• Another example: For GITE solar leasing, a 70% income tax exemption for up to 5 or 10 years for certain capacity projects. Acclime Malaysia

Practical tips for maximising benefit

• Plan your project timeline so CAPEX falls within the eligible period.

• Use certified green-building rating tools to verify the building as “green” where required.

• Combine tax incentives with operational savings: highlight how much energy cost you’ll save and feed that into your business case.

• Engage a tax advisor or green-technology consultant early—they can help verify asset lists, submission deadlines, etc.

• Keep records meticulously: invoices, certifications, asset lists, MyHIJAU approval, etc.

Common pitfalls and how to avoid them

• Pitfall: Waiting too long and missing the CAPEX eligible period.

  • Tip: Confirm deadlines and schedule expenditure accordingly.

• Pitfall: Asset/technology is not on the approved list.

  • Tip: Before procurement, check the MyHIJAU Directory or ask the supplier for proof of eligibility.

• Pitfall: Misunderstanding whether the building is “own consumption” or “commercial/for income”.

  • Tip: Clarify with the tax authority or MGTC how the asset will be used.

• Pitfall: Poor documentation, leading to disqualification.

  • Tip: Set up a folder/tracking system from the start for asset approvals and invoices.

What this means for your business

• You improve your financial bottom-line: lower tax, faster return on investment, operating cost savings.

• You strengthen your sustainability credentials: having a green building can enhance brand value and meet stakeholder expectations.

• You future-proof your business: as policy shifts toward greener practices, you’ll be ahead of regulation and market demand.

• You optimise capital use: incentives like GITA/GITE help unlock investment that might otherwise be too risky.

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Final Thoughts & Call to Action

In summary, this article “A Look at the Financial Incentives for Green Buildings in Malaysia (GITA/GITE)” has walked you through how the GITA and GITE incentives apply to green-building projects: what they are, how they work, and how to make them work for you. If you’re planning a green building or retrofit—and you want practical help navigating the eligibility, paperwork, and financial modelling—don’t hesitate. WhatsApp or call 013-300 6284 now and let’s make your green-building project a smart business move.