When does e-Derma become mandatory for new tax exemption applications?

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

All new applications for tax exemption approval under Subsection 44(6) of the Income Tax Act 1967, specifically for institutions or organisations (IOs), will be required to be submitted through the e-Derma system starting June 15, 2026. This digital transition aims to enhance the efficiency and accessibility of the tax exemption review and approval process, aligning with the Inland Revenue Board of Malaysia's (LHDN) commitment to expanding its digital service delivery. The e-Derma system allows for online submissions at any time, eliminating the need for physical visits or the submission of hard copy documents.
Expansion of Digital Service Delivery

The mandatory implementation of the e-Derma system for new applications by institutions and organisations signifies a significant step in LHDN's strategy to digitalise its services. This move is intended to streamline the processing of tax exemption applications, making the system more efficient and user-friendly. By requiring online submissions, LHDN expects to improve overall service delivery through faster processing times and enhanced document management.
Current Limitations for Tax Representatives

Currently, new applications under Subsection 44(6) that involve funds or institutions/organisations/funds (IOTs) represented by tax representatives or tax agents must still be submitted manually. These manual submissions require the inclusion of supporting documents. LHDN has indicated that the e-Derma system will be extended to accommodate this category of applicants in a subsequent phase, suggesting a gradual rollout of the digital platform.
Broader Functionality of e-Derma

Beyond new applications, the e-Derma platform offers a range of functionalities to support institutions and organisations. Users can utilise the system to request extensions for existing approval periods, submit essential documents such as Audited Financial Statements and Self-Review Forms, and make amendments to their IOT-related information. These services are accessible via the LHDN and MyTax portals, with a user manual provided to guide applicants through the submission procedures.

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When does e-Derma become mandatory for new tax exemption applications?

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