MaGIC still working on mechanism for applying Social Enterprise status which offers tax breaks

The Malaysian Global Innovation & Creativity Centre (MaGIC) will continue to lead the development of the mechanism for applying Social Enterprise (SE) status though it has been moved from the Finance Ministry to the Entrepreneur Development Ministry.

As it was the agency which initiated the development, it will see it through, said its acting chief executive officer Amiruddin Abdul Shukor.

Speaking to the Star at a Chinese New Year event at MaGIC’s headquarters, Amiruddin said SE status was announced in Budget 2019 but the mechanism was left out.

Obtaining SE status could grant organisations tax breaks and they could also qualify for donations and grants.

The government has allocated RM10mil under Budget 2019 to assist non-governmental organisations and social enterprises that help underprivileged communities.

An SE is not a recognised legal entity at the moment, though the agency has guidelines on governance, structure options and key operational matters for an organisation looking to position itself as one.

As MaGIC is now parked under the Entrepreneur Development Ministry, it will be in charge of entrepreneurs in the startup space.

“MaGIC needs to get back to basics and if accelerator programmes are great for entrepreneurs, then we will use that,” says Amiruddin, adding that the agency had run accelerators every year and they have been effective so far.

Source : TheStar