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.
Gifts
of Artefacts, Manuscripts or Painting
Starting
year assessment 1997, a taxpayer could also give donation or gifts in the form,
artefacts, manuscripts or paintings to the Government or States Government, an
amount equals to the value of the gift is deductible in ascertaining the total
income of the donor. The value or the amount of the gift should be determined
by the Department of Museum and Antiquities or the National Archives.
Similarly
with effect from year assessment 1998, a taxpayer could also give donation or
gifts in the form of painting to the Balai Seni Lukis Negara or Balai Seni
Lukis Negeri, and an amount equals to the value of the paintings is deductible
in ascertaining the total income of the donor. The value or the amount of the
painting should be determined by the respective art gallery.
Contribution
For The Benefit Of Disabled Persons
A
taxpayer is allowed a deduction for gift of money kind in the basis year for
the provision of facilities in public places for the benefit of disabled
persons. The value of the donation in-kind to be determined by the respective
local authority.
Contribution to Healthcare / Medical Centre
A
taxpayer is allowed a deduction for gift of money or medical equipment in the
basis year to any healthcare center approved by the Ministry of Health. The value
of the donation in kinds is to be determined by the Ministry of Health or based
on the cost of the medical equipment. However, the allowance deduction is
restricted to a maximum of RM 20, 000.
How
to Claim Deduction
Taxpayers
who wish to make claim on the expenses in respect of the contributions, gifts
or donations should fill up the Income Tax Return Form and the payment receipt
or the certified letter by the relevant entity that received such gifts or
donation must be obtained and kept for verifications.
Allowable
Gifts as Deduction from Aggregate Income
1. Cash
donation --- Approved Donation Amount
2. Cash
donations / contributions to libraries. --- Maximum RM20000
3. Cash
contribution to the cost of treatment of serious disease for an individual. ---
Approved Donation Amount
4. Gift
of artefact, manuscript or painting. --- Amount determined by Department of
Museum or Archives
5. Contributions
in cash or in kind towards facilities for the benefit of disabled persons. ---
To be determined by local authority
6. Gift
of medical equipment or money to healthcare facility. --- maximum RM20000 (as
certified by Ministry of Health)
7. Gift
of painting. --- Amount determined by
national Art Gallery or ant state art gallery.
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