LHDN makes e-Derma mandatory for new tax exemption applications from June 15

PUTRAJAYA, June 12 — All new applications for approval under Subsection 44(6) of the Income Tax Act 1967 involving institutions or organisations (IOs) must be submitted through the e-Derma system from June 15, 2026.

In a statement today, the Inland Revenue Board of Malaysia (LHDN) said the move is part of its efforts to expand digital service delivery and improve the efficiency of reviewing and approving tax exemption applications.

According to LHDN, the e-Derma system allows applications to be submitted online at any time without the need to visit an LHDN office or submit physical documents.

However, new applications under Subsection 44(6) involving funds or Institutions/Organisations/Funds (IOTs) represented by tax representatives or tax agents must continue to be submitted manually together with supporting documents for the time being.

The board said the e-Derma system would be extended to this category in a later phase.

In addition to new applications, the platform also facilitates requests for extensions of approval periods, submission of documents such as Audited Financial Statements and Self-Review Forms, as well as amendments to IOT-related information.

Users can access these services through the LHDN and MyTax portals, with a user manual available to assist with the submission process.

LHDN said the digitalisation of tax-related services is expected to improve service delivery through faster processing and approvals, better document management, and more convenient access for IOTs.

The initiative is also in line with the board’s ongoing efforts to strengthen a more efficient, transparent and customer-friendly digital tax ecosystem. — Bernama