How To Get Tax Exemption Easily In Malaysia?

Did you know that you can actually save money by giving donations? You didn’t ah? Well… surprise!!! But yes, that’s the fact. According to the Income Tax Act 1967, if you donate to an approved charity, organisation or institution, you will be exempted from paying tax!!

I know it’s a bit hard to understand but if I have to be a storyteller to make it easier for you to understand about it right now, the story would be how a young intern (me) got her first paycheck ever, but the government apparently wants a taste of it too (and friends, that’s what you call an income tax). So, of course, you’d be a bit upset, right? But then they said “okay if you don’t want to pay the tax, you have to do good things (donation) towards the community, only then we will give you a discount, that’s the deal, take it or leave it”. So basically, tax exemption is a reward from the government to you for being a good citizen.

By now, I’m sure most of you are already interested in making donations, but remember, NOT ALL organisations are actually approved by Lembaga Hasil Dalam Negeri Malaysia (LHDN). An approved organisation is the organisation that meets all LHDN’s conditions.

But what exactly are the conditions? And so I did some research (ehem ehem), there are actually many requirements for an organisation to be approved by LHDN, for example:

1. The organisation must be established in Malaysia for at least 2 years.
2. The organisation must have clear objectives of helping those in need, giving free access to education to the deserving community, and the welfare of all races and religions.
3. The benefits that the organisation gained must not be enjoyed by any members of the organisation.
4. The organisation cannot be involved in any political activity and use its funds or staff for these purposes.
5. The organisation must have gone through two recent audit reports before applying for the approval.

But as a donor, you can easily click on this link that LHDN provided to see the list of approved organisations or institutions.

And if you are too lazy to do so, then don’t. Because, we, SOLS Foundation (you are literally reading our blog right now) is also approved by LHDN.

To get the tax exemption from our organisation, you need to donate at least RM50. Only then the tax exemption receipt will be issued. However, that doesn’t mean you are not allowed to donate below that amount. We are, of course, thankful for any amount of donations.

How to donate to our organisation? You can just search “Donate To SOLS Foundation” up on Google. Or you can click on this link.

Remember, with your contribution, we can consistently provide free education and run energy access programmes which help in empowering people for the future!