Tax-Exempt Receipt
Tax-exempt or tax-deductible receipts will help to reduce the amount you need to pay tax on.
The deductions are applied to your aggregate income, which is the total of all your taxable income from employment, rent, royalties and etc. Donation claims are limited to 10% of your aggregate income.
For example, if you have an aggregate income of RM60,000, you can claim up to RM6,000 in tax deductions. Consequently, your chargeable income after taking the tax deduction for the donation made is RM60,000 – RM6,000 = RM54,000. Thus, lowering the amount of tax you have to pay.
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