Malaysia Approves 10-Year Tax Exemption Extension for TAR UMT

The Malaysian government has granted a 10-year extension for Tunku Abdul Rahman University of Management and Technology (TAR UMT) to receive tax exemptions. The decision, announced by government spokesperson Fahmi Fadzil, was reached during a cabinet meeting led by Prime Minister Anwar Ibrahim.

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The Cabinet has reviewed the issue of TAR UMT's tax exemption and appreciates the university's special role in providing quality and affordable private higher education.

The cabinet acknowledged TAR UMT's significant role in providing affordable, quality private higher education. However, the university must adhere to compliance checks throughout the exemption period. This includes submitting audited financial statements annually, as required by Subsection 44(6) of the Income Tax Act 1967.

This move follows a previous dispute where MCA President Wee Ka Siong accused the government of breaking a promise by reducing the tax exemption period for the Tunku Abdul Rahman College Education Foundation from 10 to three years. The Ministry of Finance had denied this, stating that the exemption was subject to compliance with tax laws.

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Therefore, the Prime Minister has approved the extension of TAR UMT's tax exemption period for 10 years.

Under the Prime Minister's announcement, effective November 27, 2025, eligible institutions can receive tax exemptions for a maximum of 10 years. These exemptions are not automatic and depend on meeting the stipulated legal requirements.

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However, TAR UMT remains subject to compliance reviews throughout the approved period, including the condition of submitting audited financial statements annually, in line with the requirements of subsection 44(6) of the Income Tax Act 1967.