FAQ about Special Program for Voluntary Disclosure (9) Stamp Duty, RPGT, Transfer Pricing
STAMP DUTY & RPGT
1. Do the instruments need to be submitted when making voluntary disclosure?
Yes. Duty payers are required to furnish instruments either manually or via online.
2. What is the meaning of manual stamping and online stamping?
Manual stamping is:
i. Revenue stamp;
ii. Finance Receipt 38; or
iii. Digital Franking System (DFS)
Online stamping is: i. Stamp Assessment and Payment System
3. What is the stamping period?
Stamping period is 30 days from the execution of the instrument.
4. If a disposer disposes more than one asset in the same year, must the disposer furnish form CKHT 1A/1B separately for each asset or only one form for all the assets disposed?
The disposer (taxpayer) is required to submit form CKHT1A/1B separately for each asset disposed.
5. Is the SVDP applicable to transfer pricing (TP) issues?
The voluntary declaration for Transfer Pricing issues are implemented in accordance with the Transfer Pricing Audit Framework (TPAF) dated 1 April 2013. This TPAF will be revised effective 1 July 2019.
6. What is the procedure in which voluntary disclosure will be carried out for TP issues?
For the purpose of voluntary declaration for TP issues under TPAF dated 1 April 2013, taxpayers are to submit the following documents before 1 July 2019:
a. TP Documentation for the respective years together with the financial information on the comparables. The TP Documentation to be submitted must be comprehensive and must provide sufficient information on the business activities of the company.
b. Information regarding the omitted/undeclared income or expenses over claimed and the supporting documents for the respective years.
c. Taxpayer can request for a pre-submission discussion to agree on the suitability of the comparable companies / transfer pricing methods used, provide information on the business activities of the company and propose a suggested timeline for the case.
d. The IRBM will undertake a review of the TP Documentation and the comparables submitted / transfer pricing methods used.
e. Upon completion of the negotiation, the IRBM will issue a letter containing the tax computations and that the IRBM has accepted the disclosures made based on the information submitted.
f. Any penalty imposed will be in accordance with the TPAF dated 1 April 2013.
7. Will an audit be carried out for voluntary disclosure of TP issues?
A minimum audit process will be carried out as long as a comprehensive TP Documentation has been submitted and the auditor is satisfied with the information provided.
8. What is the timeframe to close a voluntary disclosure case containing TP issues?
Due to the complexity of transfer pricing issues, the timeframe for settlement will be discussed during negotiation.
9. Due to the complexity of transfer pricing issues, the timeframe for settlement will be discussed during negotiation.
Yes. Penalty rates will be revised in the new TPAF effective 1 July 2019.