IRB: Only individuals and businesses earning above RM4K a month have to declare income under SVDP
Sunday, 3 Feb 20197:47 PM MYT
PETALING JAYA: Only individuals and businesses who are earning RM4,000 a month and above have to declare their income under the Special Voluntary Disclosure Programme (SVDP).
The Inland Revenue Board (IRB) said that not everyone who had received an email or a letter from them had to contact them and register as taxpayers, as this only applied to those with a "monthly employment income of RM4,000 and above.
"For those carrying on a business other than a private limited company with annual income of RM48,000 (or RM4,000 a month) after deducting approved operational expenses and capital allowances, these taxpayers are still required to register as taxpayers and declare that income to IRB.
"Taxpayers can ignore the letters and emails received from IRBM if the income received is less than the amount mentioned," it said in a press statement on Sunday (Feb 3).
The IRB assured that registered taxpayers who had previously declared their income need not worry about the emails and letters received, as they were general notifications informing of the SVDP, which ends on June 30, 2019.
IRB also noted that under the Automatic Exchange of Information (AEOI) initiative by the Organisation for Economic Cooperation and Development (OECD), Malaysia has started receiving financial information specifically related to offshore banking accounts beginning September 2018.
"Therefore, if taxpayers have offshore bank accounts connected to income derived or accrued from Malaysia, and are liable to tax but have yet to be declared to IRBM, taxpayers are request to contact IRBM to declare the income," it said.
IRB also said that it had taken note of and taken action on complaints received about a few of its officers who acted in an unprofessional manner, by threatening taxpayers and not following set procedures.
"IRB is committed in carrying out its duties as entrusted, and continuously work towards becoming a customer-focused organisation," it said.
The SVDP encourages taxpayers to voluntarily declare any unreported income until June 30. Heavily-reduced penalty rates are being offered during the disclosure period.
It is a tax amnesty programme announced in November during the tabling of Budget 2019. The scheme, which commenced from Nov 3, 2018 until June 30, 2019, will offer taxpayers reduced penalty rates for misreporting their tax filings or failure to declare their income to the IRB.
If disclosure of unreported income is made from Nov 3, 2018 until March 31, 2019, the penalty would be 10% of the tax payable.
If disclosure is made from April 1 to June 30, 2019, the penalty would be 15% of the tax payable.
After the programme expires on June 30, 2019, the penalty rates would range from 80% to the maximum of 300% as provided for under the existing tax laws.
For further clarification, visit the nearest IRB office or call its careline at 1-800 88 5436 or email pengakuansukarela@hasil.gov.my.
Read more at https://www.thestar.com.my/news/nation/2019/02/03/irb-only-individuals-and-businesses-earning-above-rm4k-a-month/#eF9uStxC8f231sBO.99
