Kuala lumpur: The tax exemption granted to the TARC Education Foundation is subject to compliance with conditions stipulated under tax laws, the Finance Ministry (MOF) stated.
According to BERNAMA News Agency, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced on November 27, 2025, that eligible institutions, organizations, or charitable funds may be granted tax exemption for up to 10 years under Subsection 44(6) of the Income Tax Act 1967. However, the ministry emphasized that such approval is not automatic and requires adherence to specific conditions prescribed under the tax laws.
The government acknowledges the TARC Education Foundation's role in delivering quality and affordable private higher education to Malaysians, the MOF said, addressing claims that the government reneged on its promise regarding the matter.
In reviewing the TARC Education Foundation's application to extend its tax exemption under Subsection 44(6), following the expiry of the existing approval in 2025, the ministry found that several conditions had not been fully satisfied. The foundation is required to make improvements in governance and donation management.
In recognition of the foundation's significant role in the education sector, the government has opted for a cautious approach by granting a temporary interim extension of the tax exemption for three years. This extension ensures the foundation's tax-exempt status remains active while it works to meet the necessary conditions.
The MOF expressed its willingness to assist the TARC Education Foundation in its efforts to improve. Should all required conditions be met, the foundation will qualify for a full 10-year tax exemption as per the government's announcement.
The statement emphasized that the issue should not be misconstrued and reaffirmed the government's commitment to supporting education, including the contributions of the TARC Education Foundation. However, all tax exemption approvals must comply with legal, compliance, and good governance standards.
The TARC Education Foundation is responsible for operating the Tunku Abdul Rahman University of Management and Technology (TAR UMT).