Public can now apply for tax deductions on cash donations to non-profit outfits

  • Nation
  • Tuesday, 20 Mar 2012

KUALA LUMPUR: Those wishing to get tax deductions from their cash contributions to non-profit organisations, including schools, may now apply to the Finance Ministry to do so.

Deputy Finance Minister Datuk Donald Lim said while an amendment to the Income Tax Act 1967 was currently being prepared to implement the move, the public was welcome to apply directly to the ministry.

"The tax deduction can be claimed at a maximum of 7% of an individual's (annual) salary. This means that if an individual donates 10% of his or her salary to such organisations, that person can only claim up to 7%," he told reporters at the Parliament building here Tuesday.

Lim added that companies could claim up to 10% of their annual income for the tax deductions.

He said tax exemption can also be claimed for contributions to registered places of worship.

"Those who donated to non-profit institutions this year prior to my announcement today (Tuesday) may apply for the tax deduction as well.

"Applicants just need to certify their donations from the recipient organisations or religious bodies," he said.

He added that the tax deduction was applicable for the 2013 filing.

Lim said the ministry will do its best to approve the applications as soon as possible.

Under Budget 2012, the Government announced that it would expedite tax exemption approvals for all places of worship as well as educational institutions, including registered national, national-type, mission and government-assisted religious schools.

For more information and to apply for the tax deduction, call the Treasury at 03-88823330 or email the Tax Analysis Division under-secretary Datuk Siti Halimah Ismail at

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