COVID 19 – Malaysian Tax Deductions for Donations Announced

As a token of appreciation and to encourage the rakyat to make contribution, it has been announced that tax deductions will be given to donors who donate cash or goods that will be used to tackle the Covid-19 pandemic and to help those affected.

Currently, under the Income Tax Act, 1967, deductions are allowed in respect of donations made to:

  1. the Covid-19 Fund (Ministry of Health)

Type of Donation: Cash and Goods

  1. the Covid-19 Fund (National Disaster Management, Prime Minister’s Department)

Type of Donation: Cash only

  1. institutions/organisations approved under section 44(6)

Type of Donation: Cash only

For donations in the form of equipment/ items to deal with the COVID19 pandemic, donors must obtain a letter from the recipient along with the official stamp in the format that will be issued by the Ministry of Finance, before applying for tax deduction from the Tax Division of the Ministry of Finance. 

Taxpayers who donate are advised to keep a record of the transaction as proof and to make sure the receipt/document is kept securely.

The accepted receipt/document for each category of donation can be found here: 

https://lampiran1.hasil.gov.my/pdf/pdfam/Media_LHDNM_26032020_INSENTIF_POTONGAN_CUKAI_BAGI_SUMBANGAN_KEPADA_TABUNG_COVID19.pdf

Please do not hesitate to contact any of the following persons if you require any clarification:

Vijey M. Krishnan (Partner) 
(T): 603 – 2632 9868
(E): [email protected]

William Wong (Partner)
(T): 603 – 2632 9905
(E): [email protected]

Nicholas Mark Pereira (Senior Associate)
(T): 603 – 2632 9911     
(E): [email protected]

Krystal Chiam (Associate)
(T): 603 – 2632 9999 (ext. 1201)
(E):  [email protected]

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