BBS PRO TALK VOL 6
SPECIAL VOLUNTARY DISCLOSURE PROGRAM
In today’s digitally connected world and with the implementation of the OECD1’s CRS2 for the Automatic Exchange of Information, tax authorities will have access to information of taxpayers from other foreign tax administrations so much easier than ever before. Observing such practice, Government of Malaysia has launched a Special Voluntary Disclosure Program (SVDP) to encourage taxpayers to come forward on a voluntary basis and report the actual income.
What can be disclosed under the Program?
|Types of disclosures|
|a) Income not previously declared / expenses over-claimed / expenses not allowed and reliefs /deductions/ rebates over-claimed|
|b) Gains on disposal of assets (real property and shares in a real property company)|
|c) Stamping of unstamped instruments|
Who is eligible for the Program?
|Categories of eligible taxpayers|
|a) Not registered with IRBM3|
|b) Registered with IRBM but have not submitted the ITRF4 / PRF5 / RPGTRF6|
|c) Submitted the ITRF / PRF / RPGTRF but have not reported the correct income / gains on disposal of assets|
|d) Late submission of instrument for stamping|
- OECD = Organisation for Economic Co-operation and Development
- CRS = Common Reporting Standard
- IRBM = Inland Revenue Board of Malaysia
- ITRF = Income Tax Return Form
- PRF = Petroleum Return Form
- RPGTRF = Real Property Gains Tax Return Form
Why should I take advantage of the Program?
Under the SVDP, any income reported will be subject to reduced penalty rates as shown in the table below.
How is this SVDP different from the previous voluntary disclosure offer?
|SVDP period||03/11/2018 – 30/06/2019||10%|
|SVDP period||01/07/2019 – 30/09/2019||15%|
|After SVDP period||After 30/09/2019||45%|
|Voluntary Disclosure Program||Action by IRBM|
|Previous program||Taxpayers may be audited on the reported issues|
(03/11/2018 – 30/09/2019)
|IRBM will accept the voluntary disclosed information in good faith. Further review will not be made on the reported information|
WHAT IT MEANS TO YOU?
Taxpayers, whether company or individuals, are now offered the golden opportunity to spring clean their tax affairs. Taking advantage of the SVDP can be a good platform to start clean and fresh from Year of Assessment 2018 onwards.
ACTION REQUIRED (Depending on your current tax standing)
|Register with IRBM for income tax number|
|File the relevant return forms for relevant year(s) of assessment|
|Review the submitted return forms. Evaluate and assess the risk areas of the tax position taken|
For example, whether:
|Submit voluntary disclosure to IRBM|
|Submit instruments for stamping|
Still not sure how the above SVDP affects you or your company or how to go about the processes to take advantage of the golden opportunity? BBS is here to help. Please do not hesitate to contact our team at firstname.lastname@example.org.