HLWE APPEALS MOF TO REINSTATE TAX EXEMPT STATUS FOR ALL INCOMES

GEORGE TOWN, April 28 -- Hospital Lam Wah Ee (HLWE), a private not-for-profit hospital in Penang, appealed to the Ministry of Finance (MOF) to reinstate its original tax-exempt status as soon as possible.

In the statement issued by HLWE today, it said the original tax-exempt status was granted for incomes such as the surplus revenue from medical services, other incomes such as rental and interest, as well as donations and contribution from the public for development, medical services or welfare aid for patients.

According to the hospital’s board of directors, the MOF had reinstated the tax-exempt status on April 7, but highlighted that the approval is very different from the original tax-exempt status which was withdrawn last year.

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“The new tax-exempt approval from MOF is limited to donations from the public to the new welfare fund to be set up in accordance to the Inland Revenue Board’s (IRB) new policy guidelines.

“Donations to the new welfare fund shall be used only for the discount of medical bills of patients who meet the requirements after review,” it said.

It said that the new tax-exempt status is only limited to the new welfare fund, whereas all income from the hospital and public donations are liable to a 24 per cent tax, thus possibly affecting the income stream of the not-for-profit hospital.

“While the board of directors agreed to follow through the MOF and IRB on setting up of the required new welfare fund, it is hoped that the MOF would consider the appeal for full reinstatement of the original tax-exempt status in order to overcome its tight financial situation,” it said.

-- BERNAMA