Additional Tax Deductions under Budget 2023: Gifts and Contributions

The following are allowed to be deducted from the aggregate income of a person for the relevant year of assessment.

• s 44(6)
  • Gift of money to the Government / State Government / local authority
  • Donations to approved institutions or Government (*)

• s 44(11B)
  • Gift of money for any sports activity approved by the Minister of Finance (*)
    • Cash or contributions in kind to approved sports activities or sports bodies approved by the Commissioner of Sports appointed under the Sports Development Act 1997 are deductible.
    • From YA 2017, only contributions in cash will be allowed for deductions. The deduction is restricted to a maximum of 7% for persons other than companies and 10% for companies.

• s 44(11C)
  • Gift of money or cost of contribution in kind for any project of national interest approved by the Minister of Finance (*)
  • Contributions to social enterprises (*)

• s 44(11D)
  • Gift of money in the form of wakaf to any religious authority / religious body / public university or gift of money in the form of an endowment to a public university (*)

• s 44(6A)
  • Gift of artefacts/manuscripts/paintings to the Government or State Government
    • An amount equal to the value determined by the Department of Museums Malaysia or the National Archives is deductible against the aggregate income of a person for the gifts of artefacts, manuscripts or paintings made by the person to the Government or State Government ( ITA 1967).

• s 44(8)
  • Gift of money for the provision of library facilities or to libraries
    • Where s 34(6)(g) ITA 1967 does not apply to a person, a deduction of up to RM20,000 is allowed for the provision of library facilities to public or school libraries and institutions of higher education

• s 44(9)
  • Gift of money or contribution in kind for the provision of facilities in public places for the benefit of disabled persons
    • Individuals who donate cash or goods, as valued by the relevant local authority, for facilities in public places for the benefit of disabled persons are given a deduction against their aggregate income.

• s 44(10)
  • Gift of money/cost/value of gift of medical equipment to any healthcare facility approved by the Ministry of Health
    • Individuals who donate money or medical equipment for healthcare facilities approved and valued by the Ministry of Health are given a maximum deduction of RM20,000 against their aggregate income.

• s 44(11)
  • Gift of paintings to the National Art Gallery or any state art gallery
    • An amount equal to the value of paintings donated to the National Art Gallery or State Art Gallery, and valued by these, is deductible against aggregate income.

(*) Effective from YA 2009, such deductions shall not exceed the difference between 10% of the aggregate income and the amount deducted under s 44(6)[This restriction applies to only donations made to approved institutions or organisations], 44(11B), 44(11C) and 44(11D).

Malaysia’s national budget for 2023 was re-tabled again in February 2023.

To Download Revised Budget 2023 Speech and some other related publications – https://www.ccs-co.com/post/budget-2023-malaysia-madani

Tax deduction for individuals/companies that contribute to NGOs that implement sports development programmes at the grassroots level

Para 173 of the 2023 Budget Speech, Prime Minister Datuk Seri Anwar Ibrahim said:

Feedback from MOF on a dialogue held on 21 June 2023 with professional bodies:

• This deduction will be provided under section 44(11C) of the ITA 1967.
• The commencement date will be based on the approval date of specific activities.
• Guidelines on the application and eligibility will be issued and published on the MOF website.

Tax deduction for employers who hire former national athletes

Para 174 of the 2023 Budget Speech, Prime Minister Datuk Seri Anwar Ibrahim said:

Feedback from LHDNM:

The total remuneration borne by employers hiring former national athletes for the assessment year 2023 to the assessment year 2024 is eligible for a tax deduction for the employer’s income tax computation.

And the tax deduction here refers to the further deduction (In simple words, such expenses qualify for a double deduction).

Tax deduction on contributions made to FINAS

Para 176 of the 2023 Budget Speech, Prime Minister Datuk Seri Anwar Ibrahim said:

According to National Tax Seminar (“NTS”), the tax deduction given on contributions made to Tabung Komuniti Filem dan Pembangunan Filem Kenegaraan under National Film Development Corporation Malaysia (“FINAS”) is capped at 10% of aggregate income.

It was further mentioned in the NTS presentation slide that the total contribution receivable/received is capped at RM10 million.

CTIM would like to know whether this refers to the total relief claimable being capped at 10% of aggregate income, further subject to a maximum of RM10 million.

Feedback from MOF:

The maximum contribution limit of RM10 million is still under discussion with the respective agency (FINAS).

Approval is granted under Section 44(11C) of the ITA 1967 to the Tabung Komuniti Filem dan Pembangunan Filem Kenegaraan.

This proposal’s commencement/enforcement date is not applicable as this provision is an existing provision.

Disclaimer:

The articles, templates, and other materials on our website are provided only for your reference.

While we strive to ensure the information presented is current and accurate, we cannot promise the website or its content, including any related graphics. Consequently, any reliance on this information is entirely at your own risk.

If you intend to use the content of our videos and publications as a reference, we recommend that you take the following steps:

1. Verify that the information provided is current, accurate, and complete.
2. Seek additional professional opinions, as the scope and extent of each issue may be unique.

免责声明：

我们网站上的文章、模板和其他材料只供参考。

虽然我们努力确保所提供的信息是最新和准确的，但我们不能保证网站或其内容，包括任何相关图形的完整性、可靠性、适用性或可用性。因此，您需要承担使用这些信息所带来的风险。

如果你打算使用我们的视频和出版物的内容作为参考，我们建议你采取以下步骤：

1. 核实所提供的信息是最新的、准确的和完整的。
2. 寻求额外的专业意见，因为每个问题的范围和程度，可能是独特的。

Keep in touch with us so that you can receive timely updates

请与我们保持联系，以获得即时更新。

1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

• https://www.facebook.com/YourHRAdvisory/?ref=pages_you_manage
• https://www.facebook.com/YourAuditor/?ref=pages_you_manage

4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy

6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

7. Threads ✍ https://www.threads.net/@ccs_your_auditor

8. 小红书 ID ✍ 2855859831