The Inland Revenue Board of Malaysia, better known as LHDN, is taking another step toward digitalising its tax services. Beginning June 15, 2026, all new applications for approval under Subsection 44(6) of the Income Tax Act 1967 involving institutions or organisations must be submitted through the e-Derma system.

This means eligible institutions and organisations that wish to apply for tax exemption approval will no longer need to submit their new applications manually at LHDN offices, as long as they fall under the category covered by the latest digital submission requirement.

The move is part of LHDN's wider effort to modernise its services, reduce physical paperwork, and make the approval process more efficient for applicants.

What Is Changing from June 15?

From June 15, 2026, new applications under Subsection 44(6) involving institutions or organisations must go through e-Derma.

In simple terms, applicants will be able to complete and submit their applications online instead of preparing physical forms and documents for manual submission. The system is designed to make the process more convenient, especially for organisations that regularly deal with donation-related tax exemption matters.

Subsection 44(6) is commonly associated with approvals that allow donations made to eligible organisations or funds to qualify for tax deduction. Because of this, the approval process is important not only for the organisations applying, but also for donors who may want proper tax recognition for their contributions.

By moving the application process online, LHDN aims to make the overall experience faster, more organised, and easier to track.

Why LHDN Is Introducing e-Derma

According to LHDN, the introduction of e-Derma is part of its ongoing digital transformation. Like many government agencies, LHDN has been expanding online services to reduce counter visits and improve processing efficiency.

The e-Derma system allows applications to be submitted at any time through an online platform. This is a major improvement for applicants because they are no longer limited by office hours or physical document delivery.

It also helps LHDN manage applications more systematically. Digital submissions can reduce missing paperwork, simplify document review, and improve record management. For applicants, this may lead to a smoother process with fewer delays caused by incomplete or misplaced physical documents.

Manual Submission Still Applies to Some Applications

Although e-Derma will become mandatory for new applications involving institutions or organisations, not every category is moving fully online immediately.

LHDN said that new applications under Subsection 44(6) involving funds or Institutions/Organisations/Funds represented by tax representatives or tax agents must still be submitted manually for now.

These applications must continue to include the necessary supporting documents and follow the existing manual submission process.

However, this is only a temporary arrangement. LHDN has stated that the e-Derma system will be expanded to cover this category in a later phase. This suggests that the digital rollout is being implemented gradually, likely to ensure that the system can properly support different types of applicants and submission requirements.

What Else Can Be Done Through e-Derma?

The e-Derma platform is not limited to new applications only. It also supports several other related processes, making it more useful as a central online channel for approved institutions, organisations, and funds.

Through the system, users can also manage:

This is important because tax exemption approval is not just a one-time process. Approved organisations may need to update their information, renew approval periods, or submit required documents to remain compliant.

Having these functions available online can make it easier for organisations to manage their responsibilities without needing to rely heavily on manual correspondence or physical visits.

How Users Can Access the System

Users can access e-Derma through the official LHDN and MyTax portals. LHDN has also provided a user manual to guide applicants through the submission process.

This is helpful, especially for organisations using the system for the first time. Online government platforms can sometimes feel confusing at the beginning, so having a proper guide can reduce mistakes during submission.

Applicants should review the manual carefully before starting their application. They should also prepare all required information and supporting documents in advance to avoid delays.

A More Convenient Process for Organisations

For many institutions and organisations, the shift to e-Derma should make the application process more convenient. Instead of managing paper documents, arranging office visits, or submitting forms manually, applicants can handle the process online.

This is especially useful for organisations located outside major urban areas or those that do not have dedicated administrative teams. A digital system allows authorised users to submit information, upload documents, and manage updates more efficiently.

It also supports better transparency because online platforms usually provide clearer submission records and easier follow-up compared with traditional manual processes.

Part of Malaysia's Wider Digital Tax Ecosystem

LHDN's move to make e-Derma mandatory is part of a broader shift toward a more digital tax administration system in Malaysia. Over the past few years, tax-related services have increasingly moved online, from individual tax filing to business tax matters and digital service platforms.

The goal is to make tax administration more efficient, transparent, and user-friendly. For LHDN, digital systems can help speed up reviews, improve document tracking, and reduce administrative workload. For taxpayers and organisations, the benefit is greater convenience and easier access to services.

The e-Derma initiative fits into this larger direction by bringing donation-related tax exemption applications into a more structured digital environment.

Final Thoughts

The mandatory use of e-Derma from June 15, 2026 marks an important change for institutions and organisations applying for approval under Subsection 44(6) of the Income Tax Act 1967.

For new applications involving institutions or organisations, online submission will become the standard process. While some categories, such as applications involving funds represented by tax agents or tax representatives, will still need to be submitted manually for now, LHDN has already indicated that these will be included in a future phase.

Overall, this move should make the application and document submission process more efficient, convenient, and easier to manage. For organisations planning to apply for tax exemption approval, now is the right time to familiarise themselves with the e-Derma system, review the user manual, and prepare the necessary documents before submitting their applications online.