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LHDN has announced a new policy: Tax-exempt approval for non-profit organisations will now be limited to a maximum of 10 years.

Posted LnCoadmin

Before: Approval periods were determined case by case with no uniform maximum.
 Now (effective retroactively from 27 November 2025): All Institutions/Organisations/Funds (IOT) approved under Section 44(6) of the Income Tax Act 1967 will now have a maximum approval period of 10 years.

This applies to:

  • Charitable bodies
  • Welfare organisations
  • Religious institutions
  • Education funds
  • Community service NGOs
  • Any IOT eligible to receive tax-deductible donations

 For institutions with approvals expiring on 31 December 2025, LHDN will issue new letters outlining the application of the 10-year approval limit.

**Data updated on 4.12.2025