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Donating for tax relief, possible??
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TSccheng0085
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 Jun 25 2015, 10:07 AM, updated 11y ago
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Getting Started
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I got some non-moving old stocks in my shop which the condition is still good, would like to donate it to the charity (which is eligible for tax relief).
I've read through LHDN website and found this
- Act 44 (9) There shall be deducted pursuant to this subsection
from the aggregate income of a relevant person who is an
individual for the relevant year reduced by any deduction for
that year in accordance with subsection (1) an amount equal to
any gift of money or contribution in kind ( the value to be
determined by the relevant local authority ) made by him in the
basis year for that year for provision of facilities in public
places for the benefit of disabled persons.
Does it means with donating RM10000 worth of stocks , I can get tax relief of 10k?
Please advise. Thanks..
If not possible to get tax relief, does it benefits my account in anyway? The stocks are place consuming and outdated, no point giving FOC to customer because I think they won't appreciate it. To the poor it might just be good enough.
This post has been edited by ccheng0085: Jun 25 2015, 10:14 AM
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TSccheng0085
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Jun 25 2015, 12:13 PM
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Getting Started
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QUOTE(klthor @ Jun 25 2015, 11:30 AM) i think donation is kinda tricky, if not mistaken they cap at certain % of ur aggregate income and then you must donate to those approved by government -.- meaning if u donate to those temple , church or any poor ppl on street u are not entitle to claim if not mistaken. yes it does helps ur accounts a bit becoz in theory there is a 'holding cost' for ur stocks... u need place, ppl guard it, insurance, all kind of expenses. yup. only those approved by government, and locally only... organization like "world vision" not qualified bcoz it's international... lol.. cap at certain % is not a problem... the problem is how to out the stock? Do I need to prepare an invoice? Or just a letter for the organization to sign upon receiving my items, just to confirm they received the goods? If let say I consult the said organization for PLAN A, then LHDN say need to do in PLAN B instead, then pening sia.... Just assume after donation, then the goven FFK me say cannot, then is there a way to manage my account for the stock lost? |
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TSccheng0085
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Jun 25 2015, 01:11 PM
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Getting Started
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QUOTE(klthor @ Jun 25 2015, 12:29 PM) i think those approved organisation will have tax receipts or something like tat as evidence for u to claim later on. but please be sure to value ur stock at cost of purchase, not selling price of ur company. so better staple this receipt and ur supplier invoice just in case in future lhdn want u to prove lol. accounts ? it show as donations too, just tat during tax computation u will add it back same as disallowed expenses. Before donation Sales 100,000 Opening stock (1,000) puchase (90,000) closing stock 10,000 Gross profit 19,000 after donation u need to take out from purchase/openning stock and closing stock, assume u donate rm1,000 worth. sales 100,000 openning stock (1,000) <if it was purchase last year, reduce from here purchase (89,000) < i assume u purchase this year, so i minus off from there closing stock 9,000 Gross profit 19,000 Dontation (1,000) net profit 18,000 thanks bro. very helpful information.  |
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TSccheng0085
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Jun 25 2015, 02:28 PM
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Getting Started
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QUOTE(Optiplex330 @ Jun 25 2015, 02:14 PM) Are you GST registered? If yes, does the RM 500 gift rule applies? not registered. sry bro |
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TSccheng0085
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Jun 25 2015, 02:29 PM
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Getting Started
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QUOTE(klthor @ Jun 25 2015, 02:17 PM) you are welcome, try to search around which organisation need ur stuff. coz i remember those around KL has over supply whereby those in rurals area are in shortage of lots of stuff. me myself stays in rural place... here don have unifi ....  I won't consider donating to big cities la... here in Sabah need my help.. ^^ |
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