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Double Tax Deduction
Besides premium FiT rates, the solar PV installation cost is entitled for significant tax deduction.
 
Owners of businesses (Sdn Bhd & Bhd) who invest on solar installation are entitled to the following tax incentives :
 
- Capital Allowance is deductable from “adjusted income” for the cost of solar installation under Schedule 3 of Income Tax Act 1967. The solar installation will fall under the category of “plant and machinery” and the cost is deductable as Initial Allowance (20%) on the first year and Annual Allowance (14%) for each year.
- 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;
 
This effectively means a double tax deduction on the money spent on solar installation. The tax savings are as follow :
 
- For companies in the 25% tax bracket (adjustable income above RM500,000), half the amount of money spent on a solar PV installation can be recovered through these tax incentives.
- For companies in the 20% tax bracket (adjustable income below RM500,000), 40% of the cost of solar installation can be recovered.

 
Under the Budget 2011 announcement: these incentives will be extended for applications received until 31 December 2015.
 
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.

 

SuperCharge your property investment’s returns
Do you have problem finding property with positive cash flow? Most property investors end up as “property speculator” hoping solely on capital appreciation, and get into trouble when the market turns bad.
 
Take action now to weather-proof your property investment. You got to do fast!
 
Sell your electricity before even producing it!
Not getting paid on time by your clients? Getting troubled by  payment's recovery? Will it helps to secure a long term buyer before investing your money?