In the 2020 Budget speech, the Government of Malaysia had announced an increase in the limit of tax deduction for sponsoring arts, cultural and heritage activities.
The limit of tax deduction for sponsoring local arts, cultural and heritage activities was increased to RM 1,000,000 (previously RM700,000) while the deduction for sponsoring foreign arts, cultural and heritage activities remained at RM300,000.
With such incentives available, we hope that private / corporate sponsors will be interested and convinced to support the arts and culture sector in Malaysia.
Therefore, in order to promote active support from the private sector in supporting arts, cultural and heritage activities, we encourage you to get your private / corporate sponsors to apply for tax deduction under Section 34(6)(k) of the income Tax Act 1967.
To make it easier for you, we have designed a process flow chart in relation to the general procedure on application for tax deduction that will hopefully guide you through the process.