The Inland Revenue Board of Malaysia will make the use of its e-Derma system mandatory for all new applications for tax exemption approval beginning June 15, 2026.
The move forms part of its ongoing efforts to expand digital service delivery and streamline tax-related processes for institutions and organisations seeking tax-exempt status.
In a statement on Friday, the tax agency said the e-Derma platform, which has been accessible through the MyTax portal since Aug 20, 2025, enables institutions and organisations to submit applications online without visiting LHDN offices or submitting physical documents.
According to the tax authority, the digital platform is expected to improve the efficiency of the application review and approval process while offering greater convenience to applicants.
Under the new requirement, all new applications for approval involving institutions or organisations must be submitted through e-Derma from June 15 onwards.
However, for applications submitted by funds or institutions, organisations and funds (IOT) that appoint tax representatives or tax agents to handle the approval process, applications will continue to be submitted online using manual forms together with supporting documents. LHDN said the e-Derma system will be expanded to cover this category in a later phase.
In addition to new applications, the online platform also supports applications for extension of approval periods, submission of documents such as audited financial statements and self-review forms, as well as amendments to information relating to approved institutions, organisations and funds.
Subsection 44(6) approval allows qualifying institutions and organisations to receive tax-deductible donations from donors, making it an important mechanism for charitable and public-benefit entities.
