Malaysia - SETatWork - Sustainable Energy Technology at Work

In term of site selection, PTM will evaluate and endorse the technical aspect of the FSM
project before any qualified project is financed by REBF, whereas BPMB will undertake an
evaluation on project commercial viability. BPMB has an absolute discretion to decline
any project application that is not commercially viable.
6.2.2 Energy Efficiency Incentives
6.2.2.1 Companies providing energy conservation services:
i. Pioneer status with tax exemption of 70% of statutory income for a period of 5
years or Investment Tax Allowance of 60% 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 70% of statutory income; and
ii.
Import duty and sales tax exemption for equipment used in the related project
which are not produced locally. Equipment purchased from local manufacturers is
given sales tax exemption.
These incentives are for applications received from 28 October 2000 until 31 December
2010. Companies are required to implement their projects within one year from the date
of approval of the incentive.
6.2.2.2 Companies which incur capital expenditure for conserving energy for
own consumption
i. Investment Tax Allowance of 60% on the qualifying capital expenditure incurred
within a period of 5 years with the allowance to be set off against 70% of statutory
income for each year of assessment. Incentive is applicable for applications
received by the Malaysian Industrial Development Authority (MIDA) from 1 October
2005 until 31 December 2010; and
ii.
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.
6.2.2.3 Incentives for the use of renewable energy resources
Companies generating energy from renewable sources such as biomass, hydro power
(not exceeding 10 MW) and solar power are eligible for the following incentives:
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