Malaysia CCS Tax Incentives (Budget 2023)

Budget 2023 created dedicated CCS tax incentives for applications from February 25, 2023 to December 31, 2027: in-house CCS and CCS service providers earn a 100% Investment Tax Allowance on qualifying capex for ten years against up to 100% of statutory income, with service providers alternatively electing a ten-year 70% income-tax exemption; qualifying equipment gets import-duty and sales-tax exemption, and firms using CCS services deduct service fees. The incentive sits beside the CCUS Act 2025 licensing regime (Agency, permits, stewardship fund), so fiscal and regulatory tracks matured together — allowance for the capex, licences for the activity. Coverage is Peninsular-plus-Labuan in line with the Act.