In line with current technological advancements, entities that have obtained the necessary approval may submit an application to the Chief Director of Inland Revenue in the State (KPHDN) to issue electronic receipts. This application must be accompanied by a justification for their issuance.

For waqf and endowment contributions, reference must be made to the Memorandum of Understanding (MoU) between the waqif/donor and the fund, particularly regarding whether the principal amount must be preserved. KPHDN has set a condition requiring 50% objective expenditure—that is, 50% of the income (i.e., returns or benefits from the waqf or endowment) received in the preceding year must be spent in alignment with the fund’s stated objectives. Compliance with this condition is necessary to maintain approved status.

Example: The waqf fund and the waqif have signed an MoU stating that the RM10 million investment is not to be spent but must be invested. However, the returns (dividends or interest) generated from that investment may be used according to the fund’s stated objectives. Therefore, the dividends or investment income are subject to the 50% expenditure requirement."

A tax-exempt official receipt under subsection 44(11D) of the Income Tax Act 1967 cannot be issued to the donor because the contribution is considered a refundable principal amount. Tax-exempt receipts can only be issued for non-refundable (consumable) contributions.