The Council of Ministers, during its session on February 22, 2023, approved a bill amending the Income Tax Law to grant an additional tax exemption in the form of a capital deduction on specific capital expenditures with the aim of encouraging energy upgrades and saving business energy.
In terms of improving the energy efficiency of buildings, an increased capital allowance of 7% (instead of 3% under the existing legislation) is granted on specified capital expenditure incurred within the tax years 2023, 2024 and 2025.
Furthermore, for machinery and equipment connected to renewable energy systems, as well as technical energy efficiency improvement systems, an increased capital allowance of 20% (instead of 10% granted under the existing legislation) is granted on capital expenditure incurred within of the tax years 2023, 2024 and 2025.
Finally, for new motorized electric commercial vehicles, as well as taxis and buses, an increased capital allowance of 25% is granted (instead of 20% granted under the existing legislation) on capital expenditure incurred within the tax years 2023, 2024 and 2025.
