Malaysia CCS Tax Incentives (Budget 2023)

Malaysia introduced dedicated CCS tax incentives for applications from 25 February 2023 to 31 December 2027. In-house CCS projects and CCS service providers may receive an Investment Tax Allowance equal to 100% of qualifying capital expenditure for ten years, offset against up to 100% of statutory income. CCS service providers may alternatively receive a 70% statutory-income tax exemption for ten years. Eligible equipment receives import-duty and sales-tax exemptions, and users of CCS services may deduct qualifying service fees.