Siena:The government has announced a proposal to extend tax incentives for angel investors by four years. This initiative aims to attract more investment into technology start-up companies at the pre-seed and seed stages by offering tax exemptions on individual aggregate income equivalent to the investment made in these companies.

According to BERNAMA News Agency, Previously, these tax incentives were applicable for investments made between January 1, 2013, and December 31, 2026. With the proposed extension, the incentives will now be available for investments made from January 1, 2027, until December 31, 2030.

The government has also proposed extending the Accelerated Capital Allowance (ACA) on capital expenditure for plant, machinery, and information and communications technology (ICT) equipment. This measure is intended to boost domestic direct investment and encourage the adoption of digital technology in business operations.

Under the ACA incentive, qualifying capital expenditure is eligible for an initial allowance of 20 percent and an annual allowance of 40 percent, allowing companies to claim the full amount within two years. Eligible expenditures include the purchase of heavy machinery, plant, general machinery from local manufacturers, ICT equipment, computer software packages, and related consultation, licensing, and incidental fees for developing customized software.

The ACA was initially effective for qualifying capital expenditure incurred from October 1, 2025, to December 31, 2026. With the proposed extension, it will be applicable for expenditure incurred from January 1, 2027, to December 31, 2030.