Incentives for End-Users mean that Companies generating energy from renewable sources have a choice of applying for the following incentives:
Pioneer Status with income tax exemption 100% of statutory income for 10 years; OR
Investment Tax Allowance (ITA) of 100% on qualifying capital expenditure incurred within a period of 5 years. This allowance can be set-off against 100% of statutory income for each year of assessment; AND
Import duty and sales tax exemption on equipment used to generate energy from renewable sources not produced locally and sales tax exemption on equipment purchased from local manufacturers.
Note that the term ‘Companies’ refer to companies locally incorporated under the Companies Act 1965-Syarikat Berhad and Syarikat Sendirian Berhad. This type of application is also known as a ‘project’ application.
Under the Budget 2011 announcement: this incentive will be extended for applications received until 31 December 2015.