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Straight answers on giving in Malaysia
Tax relief, receipts, e-Invoices, PDPA and fundraising rules — researched from LHDN, SSM, ROS and other primary sources, and re-checked on a schedule.
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What must be on a valid donation receipt in Malaysia? A checklist for NPOs
What makes a receipt valid for a donor's tax deduction is that (1) your organisation holds current approval from LHDN under subsection 44(6) of the Income Tax Act 1967 for the fund the donation went to, and (2) the receipt itself carries what LHDN's own current guideline requires of every approved organisation, plus anything extra your specific approval letter adds. That guideline, dated 23 October 2025, publishes a general receipt checklist — organisation details, a unique preprinted serial number, the donor's full particulars, the amount and date, the collector's position, and a fixed reference to your approval — which this article walks through in full below [1][2]. A donation to an organisation without 44(6) (or an equivalent) approval, or to a fund your approval doesn't cover, cannot be issued as tax-deductible at all — you can still give the donor an ordinary receipt as proof of payment, just not one that lets them claim a deduction.
Do we need an e-Invoice for a donation, or is our LHDN receipt still enough?
It depends on what kind of organisation you are, on your annual turnover, and the answer has changed twice in the last year. If you are a religious institution or organisation set up exclusively for worship or advancing religion, LHDN's own rules currently exempt you from issuing e-Invoices for donations you receive [1] — your existing receipt can carry on unchanged. If your organisation also holds LHDN tax-exempt approval for a separate charity or community project, or you are a non-religious NPO with that approval, this donation-specific exemption does not apply to you [1] — but a separate, general exemption may still cover you: taxpayers of every kind with annual turnover or revenue under RM3,000,000 are currently exempt from e-Invoicing altogether, donations included [2]. Whether that covers your organisation depends on your own turnover, not on your s44(6) or 34(6)(h) status — see "The general small-taxpayer exemption" below.
What is s44(6) approval, and how does our NPO get it?
Subsection 44(6) approval is a status the Director General of Inland Revenue (DGIR/KPHDN) grants, by application, to a non-profit institution, organisation or fund. It does two things: it exempts your own income from tax, and it lets your donors deduct their gifts (up to 10% of aggregate income). Approval is not automatic or permanent — it runs for a fixed period (up to five years), comes with conditions you must keep meeting, and needs reapplying before it expires. Whether you currently hold it is written on your KPHDN approval letter, not assumed from being registered or being "obviously" a charity.
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Tax & Receipts
What must be on a valid donation receipt in Malaysia? A checklist for NPOs
What makes a receipt valid for a donor's tax deduction is that (1) your organisation holds current approval from LHDN under subsection 44(6) of the Income Tax Act 1967 for the fund the donation went to, and (2) the…
Do we need an e-Invoice for a donation, or is our LHDN receipt still enough?
It depends on what kind of organisation you are, on your annual turnover, and the answer has changed twice in the last year.
What is s44(6) approval, and how does our NPO get it?
Subsection 44(6) approval is a status the Director General of Inland Revenue (DGIR/KPHDN) grants, by application, to a non-profit institution, organisation or fund.
How much can our donors deduct? What to tell donors about tax relief on their gifts
A donor who gives cash to your organisation can deduct the gift from their taxable income — not get it refunded — and only if your organisation is approved by LHDN under subsection 44(6) of the Income Tax Act 1967.
Non-cash donations: can we issue a tax receipt for rice, equipment or a donated car?
Under Malaysian tax law, the general rule for a tax-deductible donation receipt is that it must be a gift of money.
Memorial tablets, lamps and ritual registrations: donation or sale? What it means for receipts and e-Invoices
A payment only counts as a "gift" eligible for a tax-deductible receipt under subsection 44(6) if the giver receives nothing specific back for it.
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