Gifts, Donation or Contribution
Cash Donation
A taxpayer is entitled to claim deduction expenses on cash donation made in the basis year for each year assessment in ascertaining the total income which is chargeable to tax. Donations must be paid to the Government, State Government, local authorities, or institutions or organizations which are approved by the Director General of Inland Revenue. Each claim must be substantiated by the original receipt. The receipt is an endorsement for the donation has been approved by the LHDNM.
A taxpayer is also entitled to claim deduction in respect of:
1. Cash donations for the provision of library facilities which are accessible to the public and contributions in-kind to public libraries and libraries of schools and institutions of higher education. The allowable deduction is restricted to a maximum of RM20, 000.
2. Cash contribution for the cost of treatment of serious diseases for individuals, made through a fund or trust account approved by The LHDNM established for helping the individuals.
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