Tax threshold on donations to increase next year

  • Nation
  • Tuesday, 19 Nov 2019

PETALING JAYA: The threshold to report charitable contributions will be increased from RM10,000 to RM20,000 next year to encourage the private sector to donate more, says Datuk Seri Dr Wan Azizah Wan Ismail.

The Deputy Prime Minister said it would spur private-sector players to contribute more in fulfilling their social responsibility.

“While encouraging more people to donate, there should also be greater transparency in managing funds to boost public confidence, ” she said when opening Harian Metro Prihatin aid programme here.The amendment to the Income Tax Act 1967 to increase the threshold to report contributions came into force on Sept 5.

Meanwhile, Dr Wan Azizah also urged foundations and non-governmental organisations to post on their websites the quantum of donations received to reflect integrity and transparency.

She said annual reports on revenue and expenditure, including funds channelled to target groups, should be revealed online to ensure greater transparency.

“Every sen contributed should be accounted for. It must reach the right target group and be used for a good cause, ” she added.

The government, she said, was also committed to helping the poor, including the homeless.

Dr Wan Azizah, who is also Women, Family and Community Development Minister, cited the Anjung Singgah project under the National Welfare Foundation as helping to provide temporary shelter for the homeless, apart from finding them jobs.

“Up to October this year, 73.7% of 7,520 Anjung Singgah occupants had secured jobs through career-matching programmes, ” she said.

Besides offering shelter and food, the Anjung Singgah programme is aimed at helping homeless folk regain financial independence.

Dr Wan Azizah said the government was committed to honouring promises to ease the people’s burden due to the rising cost of living.

“The ministry is focused on helping disaster victims, single mothers, children, disabled people, elderly folk, the hardcore poor and the homeless, ” she said.

Under the Welfare Department’s Two-Year Exit programme, 855 participants no longer need monthly welfare aid as they have gained financial independence after attending skills training programmes.

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