The Malaysian Cabinet approved a 10-year extension of the tax exemption for Tunku Abdul Rahman University of Management and Technology (TAR UMT) on July 7, 2026, affirming the government's support for the university's role in private higher education [1, 2, 3].
Prime Minister Datuk Seri Anwar Ibrahim announced the tax exemption for educational bodies including TAR UMT earlier this year on February 4 during the 'Meet Anwar' programme held at the TAR UMT campus [1, 4, 3]. The extension takes effect following recent clarifications by the Finance Ministry on tax exemption rules.
The Finance Ministry stated that under Subsection 44(6) of the Income Tax Act 1967, eligible institutions can receive tax exemption approval for up to 10 years, effective November 27, 2025, but these exemptions are subject to compliance requirements and are not automatic [4].
Datuk Fahmi Fadzil explained that institutions granted the exemption must submit audited financial statements annually following the Income Tax Act requirements. "This includes conditions such as submitting audited financial statements annually, in accordance with the requirements under Subsection 44(6) of the Income Tax Act 1967," he said [1].
He also noted that all educational bodies meeting the Finance Ministry's rules, including the TAR Foundation (TARC Education Foundation), are eligible for the 10-year exemption [4]. The government's step reflects its appreciation of TAR UMT's efforts to provide quality and affordable private higher education [1, 2, 4, 3].
Throughout the approval period, TAR UMT will be subject to ongoing compliance reviews to ensure adherence to the tax exemption conditions [1, 2, 4, 3]. The official extension duration is 10 years, reinforcing stability for TAR UMT's financial operations [1, 2, 4, 3].
