Ministry of Finance has clarified that any tax exemption granted to educational institutions, including Tunku Abdul Rahman University of Management and Technology, is subject to existing provisions and guidelines under the Income Tax Act.
The ministry said the granting of tax exemptions is governed by the Income Tax Act and is assessed based on established legal requirements rather than through discretionary decisions.
It stressed that applications for tax-exempt status must comply with the relevant criteria and procedures set out under the law, with each application evaluated according to the prescribed guidelines.
The clarification comes amid discussion over the tax treatment of TAR UMT, with the ministry reiterating that all institutions seeking tax exemption are subject to the same legal framework.
The existing tax exemption mechanism is intended to ensure transparency, consistency and fairness in the administration of tax incentives for qualifying organisations.
Any decision on tax exemption would continue to be made in accordance with the Income Tax Act and prevailing regulatory requirements.
