Tax allowance paperwork and calculator — illustrative of GITA merger and extension
Tax calculator and paperwork. Photo: Kelly Sikkema / Unsplash

If you're running a Sdn Bhd, partnership, or sole proprietorship with business income, this one matters. MIDA confirmed in early January 2026 that GITA Project (Own Consumption) is merged with GITA Asset — collapsing two parallel application tracks into a single simpler claim process. The headline tax benefit hasn't changed: 100% capital allowance on qualifying solar capex. What's changed is paperwork friction.

⚡ Key facts
  • GITA Project (Own Consumption) now merged with GITA Asset
  • 100% tax allowance on qualifying capex, set against statutory income
  • Allowance can be carried forward if not fully utilised
  • Application routed through MGTC (Malaysian Green Technology and Climate Change Corporation)
  • Applicable to companies investing in solar PV (and other qualifying green technologies)

What changed in the merger

Previously, businesses installing solar for self-consumption had to decide between GITA Project (project-by-project verification, slower) and GITA Asset (asset-based, generally faster). We used to spend the first conversation with commercial customers explaining the difference. From January 2026 onwards, that conversation is shorter — there's one route, via MGTC. The 100% capital allowance still applies against your statutory income, with carry-forward if you can't use all of it in year one.

How GITA changes the solar maths for commercial

For a typical Selangor SME installing 100 kWp on a factory roof — call it RM 350,000–400,000 capex — the full amount qualifies for the GITA allowance. Set against statutory income, that's a tax reduction in the year of installation (with carry-forward for any unused balance). The numbers compound: you're already saving on TNB bills via the Solar ATAP energy offset, and you're claiming the capex back against tax. Most of our commercial customers see this push first-year IRR notably stronger than residential solar without GITA.

What this means for your business

If you're a Sdn Bhd considering rooftop solar in 2026, the path is now clean: install via SEDA-registered contractor → MGTC verifies → MIDA processes the GITA claim → tax allowance applies in the relevant assessment year. We handle the MGTC documentation as part of our commercial installation package — design, capex breakdown, MIDA-ready forms. See our full GITA guide for application details, and check the Budget 2026 measures if you want the full RE-incentive stack.

Source

This summary is based on reporting from MIDA Official Announcement. Read the full original report at the source link for the publisher's complete coverage.

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