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Institutions/Organizations/Funds Primarily Is Not For Profit

Responsibilities And Role Of The CDGIR

Explanation Related To The Responsibilities And Role Of The Chief Director Of Inland Revenue (KPHDN) Under Subsection 44(6) Of The Income Tax Act 1967 (ACP 1967)

  1. This note aims to provide an explanation regarding the responsibilities and role of KPHDN for the purpose of implementing tax incentives under subsection 44(6) of the ITA 1967. Hopefully this note can help provide information, understanding and explanation to taxpayers, tax agents, IRBM officials and the public.
  2. KPHDN's approval under the provisions of subsection 44(6) provides privileges for institutions/organizations/funds to receive income exemption under paragraph 13(1) of Schedule 6 of the Income Tax Act 1967. While donors can enjoy deductions due to donations/cash contributions made to institutions/organizations/funds approved by KPHDN during the calculation of tax.
  3. To ensure transparency and no abuse of approval, KPHDN plays its role and responsibilities according to the compliance review framework. This framework can be accessed on the official website of LHDNM.
  4. What are the roles and responsibilities of KPHDN regarding the provision of approval under subsection 44(6)?
    • Receive and process approval applications.
    • Approve eligible applications and issue approval letters along with approval conditions and investment policies.
    • Register the application/approval reference number of the institutions/organizations/funds that make the application.
    • Provide advice and guidance to applicants and taxpayers.
    • Ensure that approved institutions/organizations/funds comply with the approval conditions through compliance review actions from time to time.
    • Shorten the approval period or terminate the approval period, if related.
    • Receive enquiries and provide feedback.
    • Drafting, preparing, and updating guidelines/regulations related to KPHDN approval conditions according to current requirements.
    • Increase public confidence in management and administration an institution/organization/fund under KPHDN approval.
    • Ensure accountability of institutions/organizations/funds approved by KPHDN.
    • Ensure that the requirements and regulations are understood by institutions/organizations/funds in the application process and compliance review in the public interest.

Disclaimer :This note is intended solely to provide a general explanation of the issues raised. It cannot be used for technical reference purposes regarding factual and legal matters. Treatment of such situations should be in accordance with the provisions of the law and existing guidelines. This note only provides general guidance and explanation for the purpose of understanding as well as awareness.