Here’s a piece of good news if you are yet to declare your income tax: you might be interested in taking up the Special Voluntary Disclosure Programme (PKPS), which is an ongoing offer by the Inland Revenue Board of Malaysia (IRBM). The special programme is a one-time thing and will not be offered annually.
Basically, under this special programme, you’re given the opportunity to come forward and declare any unreported income, with a lower penalty rate, provided you file your taxes before June 30 2019.
If you fail to do so, you’ll be subjected to a higher penalty rate of 80% to 300% beginning July 1, 2019! So, the sooner you make the declaration, the lower the penalty rate. These are the important dates to bear in mind:
|Voluntary Disclosure Period||Penalty Rate|
|03/11/2018 – 31/03/2019||10%|
|01/04/2019 – 30/06/2019||15%|
To track down non-compliant taxpayers, the IRBM will use data analysis with the help of various agencies, based on the report by Astro Awani.
It’s also worth noting that further review will not be made on the reported information and the audit action will not be taken on the year of assessment where voluntary disclosure has been made. Also, your family members and/or business partners will be spared from being audited if you make a voluntary declaration of your income.
Here are 4 important things about the special programme that you should know as a taxpayer:
1. The things covered under the Voluntary Disclosure
Under this special programme, you can make a voluntary disclosure on the following:
- Income not previously declared / expenses over claimed / expenses not allowed and reliefs / deductions / rebates over claimed
- Reporting of gains on disposal of assets (real property and shares in a real property company), and
- Stamping of unstamped instruments
2. Taxpayers who are eligible for the programme
The following taxpayers are eligible for making a voluntary disclosure under the special programme:
- Taxpayers who are not registered with the IRBM;
- Taxpayers who are registered with the IRBM but have not submitted the Income Tax Return Form (ITRF) / Petroleum Return Form (PRF) / Real Property Gains Tax Form (RPGTRF) for any year of assessment;
- Taxpayers who have submitted the ITRF/ PRF/ RPGTRF but have not reported the correct information on the income / disposal of asset(s) for any year of assessment; and
- Persons who fail to stamp executed instruments after six (6) months from the stamping period (30 days from the date of execution of the instrument)
The voluntary disclosure programme is also open to non-resident taxpayers.
Related: 6 Ways Women Can Save More on Taxes
3. How and where to make the voluntary disclosure
There’s no specific form to be filled out when making a voluntary disclosure. You’ll only need to submit the usual form(s): the ITRF, PRF, or RPGTRF.
If you’ve submitted the form(s) but have not reported the correct income or profit on disposal of asset(s) for any year of assessment, you can make a voluntary disclosure in writing or via e-mail at [email protected].
If you’re not a registered taxpayer with the IRBM, you must first register in order to get the income tax registration number. You can either do it online via e-Daftar (for companies and individuals only) or visit any IRBM’s service counter (Headquarter/Branch/Revenue Service Centre/Urban Transformation Centre (UTC)/ Information Processing Centre).
4. What to do if you’re not sure whether you’re taxable or not
For those who are not sure whether they’re taxable or not, you may want to seek advice and guidance from an IRBM officer first at any of their branches to determine whether you’re taxable or not. If you’re eligible to be taxed, you need to do the following:
- Register for an income tax number;
- Declare your income using the ITRF/PRF/RPGTRF; and
- Furnish your ITRF/PRF/RPGTRF to IRBM.
To find out more about the Special Voluntary Disclosure Programme, visit the Voluntary Disclosure page on IRBM’s website. You can also visit the nearest IRBM office, send your queries via email at [email protected], or call them via the HASiL Care Line at 1-800-88-5436 or 603-7713 6666 (for overseas callers).
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