KUALA LUMPUR, Feb 4 — Prime Minister Datuk Seri Anwar Ibrahim today announced a 10-year tax exemption for education-based foundations, provided they fulfil the conditions set by the Ministry of Finance.

He said the exemption would apply to foundations established for educational purposes, such as TARC Education Foundation.

“The education foundation and its regulations are determined by the Ministry of Finance. If its purpose is for education, like the TARC Foundation, we will approve a 10-year tax exemption,” he said.

Anwar was speaking after attending the Temu Anwar programme at Tunku Abdul Rahman University of Management and Technology (TAR UMT) here.

Last December, MCA president Datuk Seri Wee Ka Siong voiced concern over the pending expiry of Tunku Abdul Rahman University of Management and Technology’s (TAR UMT) tax-exempt status on Dec 31, warning that the Inland Revenue Board (IRB) had yet to approve an extension.

Wee said the delay could have serious repercussions for thousands of students if the university were required to pay tax.

He cautioned that if both TAR UMT and Universiti Tunku Abdul Rahman (UTAR) were to lose their tax-exempt status, they could face taxes of up to RM20 million a year.

* The report has been amended to correct an inaccuracy