Carbon Capture Storage project incentives

Country / jurisdiction: Malaysia · Year: 2023 · Status: In force · Level: National · Type: Voluntary

The Malaysian Government is implementing tax and trade incentives for Carbon Capture and Storage (CCS) activities:

companies undertaking in-house CCS activity are exempted from the Investment Tax Allowance for 10 years, can benefit from tax deductions for pre-commencement expenses within 5 years from the start of operations and from full import duty and sales tax exemption on related CCS equipment from 2023 to 2027, and t;

companies undertaking CCS services may benefit from similar incentives, as well as from a 70% income tax reduction for 10 years.

Official source: https://budget.mof.gov.my/pdf/belanjawan2023/ucapan/tax-measure.pdf