This ruling is issued pursuant to the authority granted under Section 84 of the Tax Administration Act (Law Number 3/2010). Unless otherwise stated, all references to the Act are to the Income Tax Act (Law Number 25/2019), and all references to the Regulation are to the Income Tax Regulation (Regulation Number 2020/R-21).

Introduction

1. This ruling states MIRA’s interpretation of Section 21 of the Income Tax Act.

2. Section 21 of the Act states:

Donations
(a)    Notwithstanding Sections 17 and 32 of this Act, donations made in money by a taxpayer to a State institution or a charitable organization approved by the Commissioner General may be deducted in the computation of the taxpayer’s taxable income for the accounting period in which such donation was made.
  …

3. Section 50 of the Regulation states:

Deduction in respect of donations made in money to charitable organizations
Donations made in money by a taxpayer to a charitable organization approved by the Commissioner General may be deducted under Section 21 of the Act if that charitable organization was included in the list of approved charitable organizations pursuant to Section 47(a) of this Regulation on the date such donation was made.

Ruling

4. In the computation of taxable income, only the donations made in money shall be deductible under Section 21 of the Act. 

Date of Effect

5. This ruling shall have effect from 1 March 2024.

This is the unofficial translation of the original ruling issued in Dhivehi. In the event of conflict between this translation and the Dhivehi version of this ruling, the latter shall prevail. Therefore, it is advised that both the Dhivehi version of this ruling and this translation be read concurrently.