Statement Released by Dong Zong

September 22, 2018

Tax Exemption for “MICSS Education Blueprint” Fundraising Commended—

Enaction of Tax Exemption for Donors and Beneficiaries Urged

Dong Zong acknowledges the positive response from the Ministry of Finance to exempt an estimated tax of RM853,000.00 on Dong Zong after two tax exemption applications on the fund it raised for the “MICSS Education Blueprint” in 2017. Here being Dong Zong’s statement proper:

1. For the sake of effective execution of MICSS education reform and the continuity of Chinese education in Malaysia, Dong Zong established an ad hoc committee for the “MICSS Education Blueprint” in 2016. It is intended for the comprehensive review of its “MICSS Education Reform Guidelines” launched in 2005. Experts, scholars and Chinese education stakeholders were then ensembled to embark on a rigid survey on the current situation of independent Chinese secondary schools at national level. Later, school boards, principals, teachers, students, parents, alumni and stakeholders were requested to contribute views and comments for the “MICSS Education Blueprint” drafting, with the objective of outlining its next ten years’ direction and vision. After much concerted efforts and hard work, the “MICSS Education Blueprint” was completed and formally launched on 12 August this year as ascribed. Meanwhile, for the settlement of expenses, assurance as well as the practice of its implementation, a fundraising event was staged for the target sum of RM5 million in 2017. The good news is, as of September 30 this year, the target sum was raised successfully.

Unfortunately, an estimated tax of RM853,000.00 was incurred from the raised RM5 million. Dong Zong raised the fund for educational purpose as well as operating expenses as a non-profit academic institution, the surplus of its operating expenses and fund raised should be exempt from taxation such that more private organisations will be willing to partake and contribute in national education. In this train of thought, through much effort and interactions, Dong Zong applied for tax exemption twice in letter (March 23 and June 8 respectively) for the estimated tax of RM853,000.00 from the Ministry of Finance. Finally, on 12 September, Dong Zong received an exemption reply dated August 24 from the Ministry of Finance. To this open and compassionate response from the Ministry of Finance, we express herewith our heartfelt acknowledgement. We believe, the willing dedications of private sectors on education industry owed much to the positive encouragement and understanding of the elected Pakatan Harapan government.

2. Other than the above, in the 91^st joint meeting held between Dong Zong and its state members on 25 August this year, the proposal “urging the government to exempt the surplus of non-profit academic institution operation expenses and fund raised from taxation such that more private organisations or institutions will willingly partake and contribute in national education” was approved.

As it is known, private sectors and non-profit organisations of various sorts have since been voluntarily providing financial contribution and substantial efforts in the nurture of polymaths and professionals in nation building. Their voluntary engagement in education is in essence unconditional; the government in turn should allocate appropriation responsively to render encouragement and support for better outcome and more contributions alike.

We wish, as a last note, the government would exempt taxation of the surplus of non-profit academic institution operation expenses and fund raised on one hand, and regulate a policy which automatically exempts donors and beneficiaries from taxation for education related matters as a proactive encouragement.