What Is It

The Investment Tax Allowance (ITA) is a tax incentive for companies making large capital investments in high-tech, manufacturing, or promoted economic activities in Malaysia, managed by the Malaysian Investment Development Authority (MIDA).

Who Is Eligible

Companies incorporated under the Companies Act 2016, operating in a 'promoted activity' or producing a 'promoted product' (e.g., tech manufacturing, aerospace, green technology, medical devices) are eligible for the ITA.

Required Documents

  • MIDA ICA/ITA application forms: Download and fill in the application forms.
  • Feasibility studies: Detailed studies of the project.
  • SSM details: Company registration details from the SSM.
  • Project details: Description of the project.
  • Machinery descriptions: Description of the machinery and equipment used.

    • Step-by-Step Procedure

    1. Download and fill in the application forms: Download the MIDA ICA/ITA application forms and fill them in. 2. Submit the application: Submit the application to MIDA Headquarters in Kuala Lumpur along with the required documents. 3. Evaluation and approval: Evaluation takes 1-2 months; approval is granted by the Minister of Finance.

    Cost & Processing Time

    No specific fees are mentioned, but the evaluation process takes 1-2 months.

    Where to Apply

    Applications should be submitted to MIDA Headquarters in Kuala Lumpur.

    Important Notes

    The ITA provides an allowance of 60% on qualifying capital expenditure, which can be offset against 70% of the company's statutory income for each year of assessment.