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Here at Howei we are aware of the important role sports and exercise plays in the development of an individuall and the country as a whole. It helps to foster healthy competition, promote teamwork, and improve physical and mental health. Recognizing the importance of sports, the Malaysian government passed the 'AKTA PEMBANGUNAN SUKAN 1997' (Sport Development Act 1997) to provide a framework for the development of sports in the country. One of the key features of this act is the provision of tax deductions for sports events.

 

Under the Sport Development Act 1997, individuals and companies can claim tax deductions for their contributions to sports development activities. This includes donations made to sports organizations, sponsorship of sports events, and participation in sports events. These tax deductions are available to both individuals and companies, subject to certain conditions.

 

For individuals, tax deductions are available for donations made to sports organizations registered with the Registrar of Sports under the Sport Development Act 1997. The tax deduction is equivalent to the amount of the donation, subject to a cap of 7% of the individual's aggregate income. In addition, individuals can also claim tax deductions for their participation in sports events organized by sports organizations registered under the act. The tax deduction is equivalent to the entry fee paid, subject to a cap of RM300 per year.

 

For companies, tax deductions are available for sponsorship of sports events organized by sports organizations registered under the Sport Development Act 1997. The tax deduction is equivalent to the amount of the sponsorship, subject to a cap of 7% of the company's aggregate income.

 

To claim the tax deductions, individuals and companies must provide the necessary supporting documents to the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia). These documents include receipts, invoices, and letters of acknowledgment from the sports organizations.

 

In conclusion, the 'AKTA PEMBANGUNAN SUKAN 1997' is an important piece of legislation that provides a framework for the development of sports in Malaysia. The provision of tax deductions for sports events is one of the key features of this act. Individuals and companies can claim tax deductions for their contributions to sports development activities, including donations made to sports organizations, sponsorship of sports events, and participation in sports events. This encourages greater participation in sports and helps to promote sports development in the country.


For those curious, here is the Sports Development Act 1997 in English