Inland Revenue Board is instructed by the government to extend the first phase of the Special Voluntary Declaration Programme (SVDP) by three months to June following encouraging feedback from taxpayers.
The SDVP is part of the government’s tax reforms to encourage taxpayers to voluntarily declare their income and subsequently reduce leakage of government revenue, announced in the 2019 Budget.
Taxpayers who have overseas account and taxable income in Malaysia but have yet to report to the IRB are focused on.
Finance Minister Lim Guan Eng stated that the IRB had received 381,979 voluntary tax declarations as of March 31.
Now the SVDP’s second phase, of which penalty rate is 15 per cent on the amount of tax payable, will now be shifted to the three months of July 1 to September 30.
This means effective October 1, the IRB will revert to slapping penalty rates ranging between 80 per cent and the maximum of 300 per cent, as provided for in the existing tax laws.
SDVP allows for individual taxpayers to make voluntary declarations of unpaid taxes for the years up to 2017. As for corporates, the SDVP is applicable for financial years up to March 2018 stated by Finance Minister Lim Guan Eng.
The minister assured that under the SDVP, the IRB will receive every declaration with open hearts and will not audit or undertake investigative measures.
The SDVP is seen as a opportunity for affected taxpayers to avoid future scrutiny from the taxman by allowing for reduced penalty rates.
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