Donation Tax Deduction Malaysia 2026 — Section 44(6) Approved Institutions Guide (YA 2025)

Yes — donations to institutions approved by the Director General of Inland Revenue (LHDN) under Section 44(6) of the Income Tax Act 1967 are tax-deductible. The deduction reduces your aggregate income (the income amount before tax reliefs are applied), which directly reduces your chargeable income and tax payable. Unlike standard tax reliefs (EPF, lifestyle, etc.), the donation deduction has no fixed RM cap — instead, it is limited to 10% of your aggregate income. If you donate RM 5,000 but your aggregate income is RM 40,000, you can deduct RM 4,000 (10% × RM 40,000) — not the full RM 5,000.

An approved institution is an organisation that has been granted approved status by the Director General of Inland Revenue under Section 44(6) ITA. The list is maintained by LHDN and includes: government hospitals, public universities (UM, UPM, UTM, UiTM, etc.), approved NGOs and charitable foundations, registered religious bodies (mosques, churches, temples with approved status), Tabung Harapan Malaysia, approved arts and cultural bodies, and approved sports bodies. To verify if an organisation is approved, search the LHDN Senarai Institusi/Organisasi Diluluskan at www.hasil.gov.my. Always confirm approval status BEFORE donating if you intend to claim the deduction — not all charities are approved.

For salaried employees filing Form BE: the donation deduction is entered in Part D — 'Dermaan/Sumbangan/Hadiah Kepada Institusi Kerajaan/Organisasi Diluluskan'. Enter the approved institution name, its reference/registration number, and the donation amount. For Form B filers (self-employed), it appears in Part E. The system automatically caps your deduction at 10% of your aggregate income — you do not need to calculate the cap manually. Keep the official receipt (resit rasmi) from the institution, which must show: institution name and approval number, date of donation, amount, and your full name and IC number.

It depends on whether the mosque or religious body has approved status under Section 44(6) ITA. Donations to government-administered mosques (Masjid Negeri) and Majlis Agama Islam Negeri (MAIN) are typically approved. Wakaf (endowment) contributions to Yayasan Wakaf Malaysia or MAIN are also deductible. However, cash donations to a neighbourhood surau or private Islamic centre without approved status do NOT qualify for the Section 44(6) deduction — they are personal charitable donations with no tax benefit. Zakat (which IS deductible as a rebate under Section 6A) is completely separate from the Section 44(6) donation deduction — you can claim both.

Yes — your total donation deduction under Section 44(6) is capped at 10% of your aggregate income. Aggregate income is your total taxable income before any reliefs are applied. Example: if your salary is RM 84,000 and you have no other income, your aggregate income is RM 84,000 and your donation deduction cap is RM 8,400. If you donated RM 10,000 to approved institutions, only RM 8,400 is deductible. Excess donation amounts CANNOT be carried forward to future years. Plan your donations to stay within the 10% cap to maximize tax savings — or spread larger donations across two tax years.

No — they are entirely different mechanisms. Donation (Section 44(6)): deducted from AGGREGATE INCOME before tax calculation, capped at 10% of aggregate income, must be to an LHDN-approved institution. Zakat (Section 6A): a TAX REBATE (not income deduction), deducted from TAX PAYABLE after tax is calculated, covers only zakat fitrah and other zakat payments, full amount is rebatable (1:1 reduction in tax bill). For a Muslim taxpayer: zakat saves MORE per ringgit because it reduces your final tax bill directly (not income). Donation deduction saves at your marginal tax rate (13% to 26% depending on income). Both can be claimed simultaneously — they are independent.

Keep the official receipt (resit rasmi) issued by the approved institution. The receipt must include: (1) the institution's full registered name and LHDN approval reference number; (2) the date of donation; (3) the exact amount donated; (4) your full name and IC number as the donor. Unofficial acknowledgements, WhatsApp screenshots, or bank transfer references alone are NOT sufficient for an LHDN audit. If you donate via online bank transfer, also keep the institution's bank account confirmation that it is the approved entity's account. LHDN's audit window is 7 years — retain all receipts accordingly.