MIDA Automation Capital Allowance (ACA)
Recover up to 200% of your automation investment through tax savings
A structured, zero-risk pre-assessment to help manufacturers validate eligibility before committing capital or submitting to MIDA
Maximize Your Smart Factory ROI with Expert Guidance
For Malaysian manufacturers, automation is no longer a choice—it is a survival necessity. The Automation Capital Allowance (ACA) is your most powerful tool to offset the costs of modernization. However, the difference between a successful claim and a rejected application lies in the strategic narrative and technical justification.
At DagangHalal, we specialize in transforming your automation projects into robust defensive ACA cases. Don’t leave your 200% tax relief to chance.
Why MIDA Automation CA Matters Now
Significant Tax Savings
Recover up to RM20 million in tax deductions from qualifying automation investments
(200% of Qualifying Capital Expenditure, capped at RM10 million spend)
Extended Timeline
The incentive has been enhanced and extended through the National Budget 2023 to include Industry 4.0 elements.
While QCE must be incurred within the eligible window, approved ACA may be carried forward and utilised in later years when taxable income permits.
How ACA Works (At a Glance)
Are You Eligible?
We help you navigate the strict criteria set by MIDA and SIRIM to ensure your company qualifies from day one:
Most manufacturers are uncertain about eligibility due to grey areas around software, integration, and Industry 4.0 requirements. This pre-assessment clarifies those grey areas upfront.
- Established Operations: Must be engaged in manufacturing for at least 36 months.
- Legal Compliance: Possession of a valid Manufacturing Licence (ML) or a Confirmation Letter for Exemption (ICA10).
- Proven Impact: The technology must demonstrably improve productivity, such as reducing man-hours or defect rates.
- Advanced Tech: For automation machinery, the technology must be more advanced than what you currently use, as verified by SIRIM.
What Types of Investments Qualify?
These are common automation investments we assess for ACA eligibility in real factories.
The scope of ACA explicitly includes the adaptation of Industry 4.0 elements, such as:
Industrial IoT & Big Data Analytics
Autonomous Robots & Simulation
Artificial Intelligence & Machine Learning
System Integration
Why Engage DagangHalal for Early Pre-Assessment?
Submitting directly to MIDA without a technical pre-assessment often leads to delays, clarification loops, or rejection due to mis-scoped claims. Our role is to help you submit once, correctly.
Avoid "Non-Eligible" Traps
Many firms fail by including basic software (office suites, accounting) or "like-for-like" machinery replacements that do not qualify.
The Technical Edge
We help you structure the technical narrative required for SIRIM’s evaluation, focusing on verified productivity gains.
Recent pre-assessments include food, plastics, packaging, and building materials manufacturers.
Start Your Zero-Risk Eligibility Pre-Assessment Today
Don't wait until your next tax filing. Our team will confidentially assess your planned investments and outline the most effective path to approval.
This is a confidential, non-binding eligibility discussion.
No documents, no commitments, and no submission to MIDA at this stage.
Confidential & Non-Obligatory
- No documents required
- No cost for pre-assessment
- No submission to MIDA without your consent
- Intended for factory owners and decision makers only
Takes less than 2 minutes. We will confirm details during the call.