Tax Exemption To TARC Education Foundation Subject To Compliance With Conditions -- MOF

PUTRAJAYA, July 6 (Bernama) -- The tax exemption granted to the TARC Education Foundation is subject to compliance with the conditions stipulated under tax laws, the Finance Ministry (MOF) said.

The ministry noted that Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced on Nov 27, 2025, that eligible institutions, organisations, or charitable funds may be granted tax exemption for a maximum period of 10 years under Subsection 44(6) of the Income Tax Act 1967.

“However, such approval is not automatic. It is subject to compliance with the conditions prescribed under the tax laws,” it said in a statement today.

The government does appreciate and recognise the role of the TARC Education Foundation in providing quality and affordable private higher education to Malaysians, the MOF said, denying the claim that the government broke its promise on the matter.

Among the outstanding matters, it added, are improvements that the foundation needs to make in governance and donation management.

Among the outstanding matters, it added, are improvements that the foundation needs to make in governance and donation management.

“Taking into account the TARC Education Foundation’s important role in the education sector, the government has adopted a prudent approach by granting a temporary interim extension of the tax exemption for three years.

“This extension ensures that the foundation's tax-exempt status remains in effect while the required measures to comply with the conditions are being finalised,” the statement said.

The MOF expressed its readiness to assist in facilitating the TARC Education Foundation’s improvement efforts.

If all the required conditions are fulfilled, the TARC Education Foundation will be eligible for the approval of a full 10-year tax exemption, in line with the government's announcement, it said.

“Therefore, this issue should not be distorted. The government remains committed to supporting education, including the role of the TARC Education Foundation.

“However, all tax exemption approvals must be done in accordance with the law, compliance conditions, and good governance principles,” the ministry added.

The TARC Education Foundation owns and operates the Tunku Abdul Rahman University of Management and Technology (TAR UMT).