The Inland Revenue Board (IRB) has released a media statement to clarify the amendment to para 13(1) (b) of Sch 6 of the Income Tax Act 1967 (ITA 1967), following the statement by the Chairman of Kuching Chinese Community Charitable Trust Board.

The IRB clarifies that the amendment seeks to explicitly provide that religious institutions or organisations will automatically qualify for the exemption on income from donations contributed by religious worshippers solely for the purpose of religious worship activities or the advancement of religion. The exemption applies to all religions. Prior to the amendment, taxpayers were unsure whether religious institutions or organisations automatically qualify for the exemption under para 13(1)(b) of Sch 6 of the ITA 1967 or are required to obtain approval from the Director General of Inland Revenue under s 44(6) of the ITA 1967.

The IRB also clarifies that other income such as business and rental are not within the scope of income exempted under Sch 6 of the ITA 1967 and will be subject to tax.

Kindly refer to the IRB website for further details.

Source: IRB website, 27 December 2016