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2 nd Korea Business Dialogue ‘ Corporate Social Responsibility’ Approval & Monitoring Division, Tax Policy
2 nd Korea Business Dialogue ‘ Corporate Social Responsibility’
2 nd Korea Business Dialogue
‘ Corporate Social Responsibility’
Business Dialogue ‘ Corporate Social Responsibility’ Approval & Monitoring Division, Tax Policy Department

Approval & Monitoring Division, Tax Policy Department Headquarters Inland Revenue Board Of Malaysia

Approval & Monitoring Division, Tax Policy Department Headquarters Inland Revenue Board Of Malaysia 1
Approval & Monitoring Division, Tax Policy Department Headquarters Inland Revenue Board Of Malaysia 1
Approval & Monitoring Division, Tax Policy Department Headquarters Inland Revenue Board Of Malaysia 1
Tax Incentives For CSR Activities CSR - Consumer perspectives Consumer believe companies doing charity will
Tax Incentives For CSR Activities
CSR - Consumer perspectives
Consumer believe companies doing charity
will receive a positive respond
Somerville (2013) – consumer loyalty and
willing to spend on retailers that support
charity
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities CSR – Common actions  Enviromental sustainability – recycling, waste
CSR – Common actions
CSR – Common actions
Tax Incentives For CSR Activities CSR – Common actions  Enviromental sustainability – recycling, waste
Tax Incentives For CSR Activities CSR – Common actions  Enviromental sustainability – recycling, waste

Enviromental sustainability recycling, waste management, water management etc

– recycling, waste management, water management etc Community involvement – raising money for local
Community involvement – raising money for local charity, providing volunteer, sponsoring local event etc Ethical
Community involvement – raising money for local charity,
providing volunteer, sponsoring local event etc
Ethical marketing- companies ethic to consumer, do not try
to manipulate or falsely advertise to potential customer
Ethical marketing- companies ethic to consumer, do not try to manipulate or falsely advertise to potential

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Tax Incentives For CSR Activities  Introduction Of Tax Incentives  Implementation Of Tax Incentives
Tax Incentives For CSR Activities
 Introduction Of Tax Incentives
 Implementation Of Tax Incentives
(a) Eligibility (b) Types of projects / institutions (c) Application
(a)
Eligibility
(b)
Types of projects / institutions
(c)
Application
 Implementation Of Tax Incentives (a) Eligibility (b) Types of projects / institutions (c) Application 4

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Tax Incentives For CSR Activities (Income Tact Act 1967 – ITA)  Introduction Of Tax
Tax Incentives For CSR Activities
(Income Tact Act 1967 – ITA)
Introduction Of Tax Incentives
Single deduction – section 33 ITA
Single deduction – section 33 ITA
Of Tax Incentives Single deduction – section 33 ITA  Double Deduction  Promotional Investment ACT

Double Deduction Promotional Investment ACT Pioneer

– section 33 ITA  Double Deduction  Promotional Investment ACT – Pioneer Status etc –
Status etc – MIDA Donation
Status etc – MIDA
Donation
– section 33 ITA  Double Deduction  Promotional Investment ACT – Pioneer Status etc –
Tax Incentives For CSR Activities  Introduction Of Tax Incentives Single deduction – section 33
Tax Incentives For CSR Activities
Introduction Of Tax Incentives
Single deduction –
section 33 ITA
“wholly in the production of gross
source….”
Other section
income from that
 S 34(6)(i)-child care center
 S 34(6)(g), S 44(8)- library service
 S 34(6)(h)- Contribution to community
 S 34(6)(l) – student scholarship
 S 44(9) – provision for disable person
Tax Incentives For CSR Activities  Introduction Of Tax Incentives Double Deduction SL1M – project
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
 Introduction Of Tax Incentives Double Deduction SL1M – project to enhance employability of underprivillage
 Introduction Of Tax Incentives
Double Deduction
SL1M – project to enhance employability of
underprivillage graduates (1 June 2012-31 Dis 2016)
Exp on training in re-employing women professional
on a career break (Ministry & Talent Corp)
Tax Incentives For CSR Activities  Introduction Of Tax Incentives  Promotional Investment ACT –
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
 Introduction Of Tax Incentives
Introduction Of Tax Incentives
For CSR Activities  Introduction Of Tax Incentives  Promotional Investment ACT – Pioneer Status etc
For CSR Activities  Introduction Of Tax Incentives  Promotional Investment ACT – Pioneer Status etc
For CSR Activities  Introduction Of Tax Incentives  Promotional Investment ACT – Pioneer Status etc
For CSR Activities  Introduction Of Tax Incentives  Promotional Investment ACT – Pioneer Status etc

Promotional Investment ACT Pioneer Status etc - MIDA

For CSR Activities  Introduction Of Tax Incentives  Promotional Investment ACT – Pioneer Status etc
Tax Incentives For CSR Activities  Introduction Of Tax Incentives  Tax Incentives by donation
Tax Incentives For CSR Activities
Introduction Of Tax Incentives
 Tax Incentives by donation :
(a) Institution / organization not operated for profit
under subsection 44(6) of Income Tax Act 1967
(b) Community / charity projects under section 34(6)(h) of
Income Tax Act 1967
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Understanding Of Subsection 44(6) ITA 1967 :  Tax Deduction  Tax Exemption - Donors
Understanding Of Subsection 44(6) ITA 1967 :
 Tax Deduction
 Tax Exemption
- Donors
- Institution (Income
except dividend)
Only cash donation + official receipt
Individual
- deducted
7%
Company
- deducted 10%
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Subsection 44(6) ITA 1967 Eligibility to apply :  Established in Malaysia Operated not for
Subsection 44(6) ITA 1967
Eligibility to apply :
 Established in Malaysia
Operated not for profit
Conducted not for private interest
Tax Incentives For CSR Activities Subsection 44(6) ITA 1967 Types of Institution - primarily not
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Subsection 44(6) ITA 1967 Types of Institution - primarily not for profit :  Hospital
Subsection 44(6) ITA 1967
Types of Institution - primarily not for profit :
Hospital
 Benevolent
 University
Public authority - research connected with causes,
prevention or cure of disease in human beings
 government assisted - socio-economic research
 technical or vocational
or cure of disease in human beings  government assisted - socio-economic research  technical or

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Tax Incentives For CSR Activities Subsection 44(6) ITA 1967 Types of Institution - primarily not
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Subsection 44(6) ITA 1967 Types of Institution - primarily not for profit :
Subsection 44(6) ITA 1967
Types of Institution - primarily not for profit :
Scholarship for an individual - educational/research  Relief of poverty  Conservation or protection of
Scholarship for an individual - educational/research
 Relief of poverty
 Conservation or protection of animals
 Maintain or assist a zoo, museum, art gallery
 Government assisted - problems in industrial
 Government assisted - national unity
 Conservation or protection of the environment
 International organization – Privileges & Immunities

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Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Understanding Of Section 34(6)(h) ITA 1967 : Eligibility to apply : Community / charity projects
Understanding Of Section 34(6)(h) ITA 1967 :
Eligibility to apply : Community / charity projects
*Education
*Infrastructure
*Housing *Info technology
*Housing
*Info technology
*Health *Communication
*Health
*Communication
to apply : Community / charity projects *Education *Infrastructure *Housing *Info technology *Health *Communication 14
Tax Incentives For CSR Activities
Tax Incentives For CSR Activities
Application Subsection 44(6) of Income Tax Act 1967 IRB
Application
Subsection 44(6) of Income Tax Act 1967
IRB
For CSR Activities Application Subsection 44(6) of Income Tax Act 1967 IRB Section 34A of Income
For CSR Activities Application Subsection 44(6) of Income Tax Act 1967 IRB Section 34A of Income

Section 34A of Income Tax Act 1967 MOF

For CSR Activities Application Subsection 44(6) of Income Tax Act 1967 IRB Section 34A of Income
For CSR Activities Application Subsection 44(6) of Income Tax Act 1967 IRB Section 34A of Income
For CSR Activities Application Subsection 44(6) of Income Tax Act 1967 IRB Section 34A of Income
For CSR Activities Application Subsection 44(6) of Income Tax Act 1967 IRB Section 34A of Income
Tax Incentives For CSR Activities Further Information
Tax Incentives For CSR Activities
Further Information
IRM website http://www.hasil.gov.my
IRM website
http://www.hasil.gov.my
Tax Incentives For CSR Activities Further Information IRM website http://www.hasil.gov.my 16
Tax Incentives For CSR Activities Further Information IRM website http://www.hasil.gov.my 16
Tax Incentives For CSR Activities Further Information IRM website http://www.hasil.gov.my 16
Thank you
Thank you
Thank you 17 Tax Policy Department