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Guidelines for Issuing e-Invoices by Charitable Organizations

Posted LnCoadmin

A comprehensive guide covering applicable entities, issuance procedures, exemptions, and verification methods

FAQs:

1. Charitable organizations are REQUIRED to issue e-Invoices if they meet any of the following conditions

  • Approved charitable institutions, organizations, or funds (IOF) under the Income Tax Act 1967
  • Institutions approved under Sections 44(6), 44(6B), 44(11B), 44(11C), or 44(11D)
  • Charitable or community projects approved under Section 34(6)(h)

2. Issuance Rules

  1. Upon receiving donations or contributions, an e-Invoice must be issued in accordance with the e-Invoice framework.
  2. If requested by the donor → A single e-Invoice must be issued (no additional receipt is required).
  3. If not requested by the donor → The organization may issue a receipt first and subsequently issue a consolidated e-Invoice by the 7th of the following month.

3. Exemptions from Issuing e-Invoices:

  1. Religious institutions/organizations established solely for worship or religious development
  2. Charitable organizations not approved by LHDN (donations are not tax-deductible)
  3. Non-cash donations (in-kind contributions)

Donors are not required to actively request e-Invoices (if the organization is not approved, donations are not eligible for tax deduction).

4. How to Verify if a Charitable Organization is Approved?

Step 1: Visit the LHDN official website
Step 2: Click on “Pautan Pantas”
Step 3: Select “Kelulusan Derma”
Step 4: Choose the relevant category to search

**Last Updated on 03.09.2025