SCAC welcomes proposed amendment to Income Tax Act
KUCHING: The new federal government is expected to initiate an amendment to the existing Income Tax Act ( ITA) 1967 to secure permanent tax exemption on incomes of all religious institutions.
In this respect, Sarawak Chinese Annual Conference president Rev Dr Tie King Tai believes that churches would welcome such amendment with open arms.
“If the amendment could be taken up by the government to provide permanent tax exemption on all churches’ income, the churches would definitely welcome the move.
“We shall have peace of mind to work together with the government for peace and prosperity of our beloved nation,” said Rev Tie when asked for comments yesterday.
It is understood that the Pakatan Harapan ( PH)-led government would table several Bills to amend or repeal certain Acts in the next Parliament sitting, expected to commence this July 16.
On the ITA specifically, the federal government plans to
If the amendment could be taken up by the government to provide permanent tax exemption on all churches’ income, the churches would definitely welcome the move. Rev Dr Tie King Tai, Sarawak Chinese Annual Conference president
amend its Paragraph 13(1)( b) of Schedule 6 – aimed at securing permanent tax exemption on incomes of churches.
In this respect, Methodist Kuching West District superintendent Rev Dr Lau Hui Ming remarked: “Certainly, we would look forward to the amendment. Full (tax) exemption on the incomes of all religious institutions should be maintained.
“Contributions by church members should not be deemed as having the characteristics of a taxable income.”
When contacted, Malaysian Buddhist Association Sarawak branch committee member Lim Teck Hee said the chairman Datuk Dr Tay Chin Kin was unavailable for comments.
“Our chairman is travelling now,” said Lim.
The Borneo Post could not get comments from Association of Churches in Sarawak (ACS) secretary-general Elder Ambrose Linang as at press time.
For the record, the existing Paragraph 13(1)( b) of Schedule 6 of the ITA consequent to the passing of the proposal put up in the 2017 Budget Proposal reads: “(For) 13(1), the income of:
(a) an institution, organisation or fund approved for the purposes of Section 44( 6) so long as the approval remains in force, or;
( b) a religious institution or organisation in respect of any contribution received for charitable purposes in the basis year for a year of assessment provided such institution or organisation is not operated or conducted primarily for profit and is established in Malaysia exclusively for the purpose of religious worship or the advancement of religion.”