Donating to a good cause is always rewarding—but did you know that some contributions are also tax-deductible? If you’ve given to a registered organisation this year, you may be eligible for donation tax relief Malaysia allows under the Income Tax Act.
Here’s everything you need to know about which donations qualify, how much you can claim, and how to file it correctly in 2026.
What Is Donation Tax Relief in Malaysia?
Donation tax relief allows individual taxpayers and businesses to deduct part of their charitable contributions from their taxable income. This means your chargeable income is reduced, which can lower your overall tax bill.
Note: Not all donations are claimable. Only cash donations to government-approved institutions and funds are eligible.
What Types of Donations Are Eligible?
According to the Inland Revenue Board of Malaysia (LHDN), donations must be made to approved institutions or organisations under Section 44(6) of the Income Tax Act.
Eligible donations include:
- Cash contributions to approved charities, religious bodies, and public benefit organisations
- Donations to disaster relief funds approved by the government (e.g. flood or pandemic relief)
- Gifts of money for sports development, libraries, or national heritage conservation
Important: Contributions must be in cash only. Donations in kind (e.g. goods, services, or volunteer hours) are not tax-deductible.
To check if the recipient organisation is approved, refer to LHDN’s published list of eligible institutions or confirm directly with the organisation.
How Much Can You Claim?
Tax relief for donations is capped at 10% of your aggregate income (after other allowable expenses and reliefs).
Example:
If your aggregate income is RM100,000 and you donated RM15,000 to a qualified charity:
- You can claim RM10,000 as tax relief (10% limit)
- The excess RM5,000 cannot be carried forward or claimed next year
Always ensure you request and retain official tax-exempt receipts from the organisation as proof. These should include:
- The organisation’s name and registration number
- Your name (as per IC)
- Amount donated
- Date of donation
- Statement indicating approval under Section 44(6)
How to File the Donation Tax Relief
During your annual e-Filing:
- Head to the “Approved Donations” section
- Enter the amount (capped at 10% of aggregate income)
- Keep scanned copies of receipts for your records (LHDN may audit within 7 years)
To see how donation relief fits within a broader tax-saving strategy, read Versa’s full breakdown of donation tax relief in Malaysia and other personal reliefs that may apply to you in 2026.
Conclusion: Give Generously, Claim Responsibly
Understanding donation tax relief Malaysia provides ensures your generosity also supports your financial wellbeing. Whether you’re giving to a local NGO, disaster fund, or religious organisation, keep your receipts and claim what you’re legally entitled to.
Looking for more ways to save on tax? Learn how smart planning with Versa can help you make the most of every ringgit.