If you donated to charity last year, or contributed to a mosque, a public university, or a registered welfare organisation, you may be able to deduct that from your taxable income. People who give regularly often don’t claim everything they’re entitled to, simply because the rules aren’t obvious.
LHDN recognises a range of donations and gifts as eligible for tax deductions, from cash contributions to approved charities to gifts of artefacts and medical equipment. These deductions come off your aggregate income, separately from your personal tax reliefs.
What Counts As An LHDN-Approved Donation Or Gift?
LHDN recognises ten categories of donations, gifts, and contributions for tax deduction purposes. Not all of them come with a deduction limit, and the caps that do exist vary by category.
The 10% cap applies collectively to the middle group of categories. Charitable institutions, sports bodies, national interest projects, and wakaf contributions are all pooled together when calculating how much you can deduct, not assessed separately.
Donations to organisations not listed by LHDN do not qualify for deductions, regardless of how legitimate or well-known the charity might be. You can check whether an institution is recognised on LHDN’s website.
How Does The 10% Cap Actually Work?
Say your aggregate income for the year is RM60,000. The maximum you can deduct for approved charitable donations combined is 10% of that, which comes to RM6,000. If you donated RM5,000 to an approved institution over the course of the year, you can deduct the full RM5,000, bringing your chargeable income down to RM55,000.
If you donated RM8,000, you can only deduct RM6,000. The remaining RM2,000 cannot be carried forward to the following year.
Direct donations to the government, state governments, or local authorities are not subject to the 10% limit, so the full amount can be deducted.
Is There A Minimum Donation Amount?
LHDN does not set a minimum. You can donate any amount and claim the deduction as long as the organisation is approved and you have proper documentation.
Some organisations do require a minimum donation on their end for administrative reasons. WWF Malaysia, for example, requests a minimum of RM10 for donors who want a tax exemption receipt. This is the organisation’s own requirement, not LHDN’s.
What Do You Need To Claim the Deduction?
To get a tax exemption receipt from an approved institution, you’ll need to provide the following details to the organisation at the time of donation:
- Full name (as per IC)
- IC number or passport number
- Complete mailing address
Without these, the organisation may not issue you with an official tax exemption receipt, and without that receipt, you cannot claim the deduction.
Make sure these details are included. Otherwise, you will not be able to claim the deduction. Do note that the LHDN has been phasing in e-Invoicing since 2024, so the receipt you get may look different from what you’re used to.
Where To Declare It In Your Tax Form
When filing via MyTax (e-Filing), you’ll find the donations and gifts section under the deductions portion of your Return Form.
Enter each donation separately under the appropriate category. LHDN’s e-Filing system will automatically cap your deduction at 10% of aggregate income where applicable.
If you have questions about specific donations or want to confirm whether a particular organisation qualifies, LHDN’s donation approval page is the most reliable place to check.
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For more on reducing your tax bill, see our guides on personal tax reliefs for YA 2025 and how to calculate your chargeable income.
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