LHDN Makes e-Derma Mandatory for New Tax Exemption Applications from 15 June 2026

The Inland Revenue Board of Malaysia (LHDN) has announced that all new applications for tax exemption approval under Subsection 44(6) of the Income Tax Act 1967 involving institutions and organisations must be submitted through the e-Derma system starting 15 June 2026. The initiative forms part of LHDN’s efforts to enhance digital service delivery and improve the efficiency of tax exemption application reviews and approvals.

According to LHDN, the e-Derma platform enables institutions and organisations to submit applications online at any time without visiting an LHDN office or submitting physical documents. This digital approach is expected to streamline the application process and improve accessibility for applicants.

However, new applications involving funds or institutions represented by tax representatives or tax agents must continue to be submitted manually together with supporting documents for the time being. LHDN stated that the e-Derma system will be expanded to cover this category in a future phase.

In addition to new applications, the e-Derma platform also supports requests for extensions of approval periods, submission of audited financial statements and self-review forms, as well as updates to organisation-related information. The digitalisation initiative is expected to deliver faster processing, improved document management, and a more transparent tax administration system.

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