PUTRAJAYA: The Inland Revenue Board of Malaysia (IRBM) has urged all sports association to seek permission first from the Ministry of Finance before collecting any donation.
IRBM, in a statement today, said the approval was pertaining to tax exemptions for cash donations to sports association in Malaysia.
‘’Not all cash donations which are given to institutions or organisations or association qualify the donor for tax deduction.
According to the Income Tax Act 1967 (ITA 1967), tax deduction limited to seven per cent (donors other than companies) or 10 per cent (corporate donors) of the aggregate income can only be enjoyed if the cash donation is given to institution or organisation or association approved under subsection 44(6), 44(11B) or 44(11C) of the ITA 1967,’’ said IRBM.
IRBM said that further details could be obtained through the official portal at www.hasil.gov.my
In order to get a tax exemption under subsection 44(6), institution or organisation or association could submit an application to IRBM for consideration, it said.
Meanwhile, for tax exemption under subsection 44(11B) and 44(11C), the application could be submitted to the Ministry of Finance for consideration, IRBM added.
The statement said that it was hoped the explanation could correct confusions regarding the issue of tax deductions under sub-section 44(6), 44(11B) and 44(11C) of the ITA 1967. — Bernama
