Those who have declared their income to HASiL and have undeclared or additional income are assessed for the year 2021 and the preceding years. — File pix.
KUALA LUMPUR: Based on the concept of AES (Awareness, Education, Services) practiced at the Inland Revenue Board of Malaysia (IRBM), the Special Voluntary Disclosure Programme (SVDP) 2.0 provides opportunities for new and existing taxpayers to improve their tax compliance.
This allows taxpayers to voluntarily declare their income within the implementation period.
Chance for new taxpayers
All categories of taxpayers are offered the SVDP 2.0, except those listed in the employer file category.
The programme is for those who have undeclared or under-declared income; overclaimed or disallowed other expenses or claims; overclaimed relief, deductions or rebates; and over-claimed their capital allowances or incentives.
Those who wish to report asset disposals and stamping of documents or agreements that are not stamped within the stipulated period can also voluntarily join.
SVDP 2.0 also focuses on the participation of new taxpayers in line with the implementation of the Tax Identification Number (TIN) since 2023 where 7.8 million individual citizens and permanent residents are automatically assigned a TIN.
Assessment on disclosure
There will be an assessment raised on new taxpayers who have started business or have income for the assessment year 2022 and preceding years of assessment.
For existing taxpayers, assesment will be raised for 2021 and preceding years of assessment for those who have declared income to HASiL but did not submit the Income Tax Return.
Those who have declared their income to IRBM and have undeclared or additional income are assessed for the year 2021 and the preceding years.
Voluntary disclosure can also be made by those who did not declare disposal of assets for assessment year 2022 and the preceding years.
Stamp duty payers can also participate in SVDP 2.0 if their documents or agreements were signed on or before May 1 this year and sent for stamping on June 6, 2023 to May 31 next year.
All voluntary income disclosures in the preceding years will be taxed in the appropriate assessment year as provided under the tax law.
For Real Property Gain Tax, voluntary disclosure of declaration of asset disposal in the preceding year will be assessed based on the assessment year that the asset was disposed of.
No audit, no penalty
IRBM will receive the voluntary disclosure information in good faith during the SVDP 2.0 and no audit or investigation will be conducted in future.
Audit or investigation may be conducted for the assessment year that involves a failure to settle the tax payment within the stipulated period.
Taxpayers will also enjoy a 0% penalty offer for income declared under this programme.
For stamp duties, the offer of a full penalty exemption extends to any document or agreement that was signed on or before May 1 this year and has not yet been stamped.
14 working-day processing
Complete and eligible applications will be processed within 14 working days from the date of receipt. However, application for transfer pricing will take 30 working days.
A settlement letter will be issued together with notice of assessment or additional assessment for voluntary disclosure that meet the stipulated conditions.
Join SVDP 2.0 online
Voluntary disclosure may be made until May 31, 2024 at mytax.hasil.gov.my by submitting ITRF for the assessment years involved. Taxpayers who are unable to access ITRF via online can submit the form in person to the IRBM office where their tax files are registered or at the nearest IRBM offices.
The ITRF form including the Voluntary Disclosure Form for Transfer Pricing Case can be downloaded and printed from the IRBM’s Official Portal.
For duty payers, documents or agreements need to be submitted through the Stamp Assessment and Payment System for the stamping process.
IRBM’s stamp duty payments are even easier now with the use of an online system known as STAMPS, short for “Stamp Assessment And Payment System”.
This system is not new as IRBM had introduced that in 2012 and has since been facilitating those making payments.
Tax payment in 30 days
The tax payment can be made one-time within 30 days from the notice date or in installments until May 31, 2024 based on the approved installment payment without submitting supporting documents.
Applications for installment payment need to be submitted through the SVDP 2.0 link in the IRBM’s Official Portal or at MyTax using the SVDP 2.0 Installment Payment Application Form.
Audit or legal action can be taken in the future if tax arrears are not paid within the stipulated period, so it is advisable to pay the installment now to reduce the monthly commitment.
Income from or kept abroad
Income earned or derived in Malaysia is subject to income tax in Malaysia, even if that is kept in a bank account abroad.
It is advisable to declare that through SVDP 2.0 based on the years of assessment it was received and will be subjected to the terms and conditions.
Overseas income received in Malaysia by residents is subject to the imposition of income tax in Malaysia starting from Jan 1, 2022.
However, there is a tax exemption on the respective income that is subject to certain terms and conditions.
To enjoy the zero penalty offer on tax settlement, join SVDP 2.0 now until May 31, 2024 at the MyTax Portal (mytax.hasil.gov.my) or through the SVDP 2.0 link at www.hasil.gov.my
