FAQ about Special Program for Voluntary Disclosure （1）Introduction / Purpose
1. What is Special Program for Voluntary Disclosure?
The Special Program for Voluntary Disclosure is part of the government’s effort in reforming thetax system to encourage taxpayers to come forward on a voluntary basis and report the actual income in order to increase tax collection for development of the nation.
Voluntary Disclosure covers the following:
a) income not previously declared / expenses over claimed / expenses not allowed and
reliefs / deductions / rebates over claimed
b) reporting of gains on disposal of assets (real property and shares in a real property
c) stamping of unstamped instruments.
2. Why should I take advantage of this Special Program for Voluntary Disclosure?
Under this Special Program for Voluntary Disclosure, lower penalty rates are imposed as compared to the current practice. The penalty rates are as follows:
Higher penalties rates will be imposed after the expiry of the Special Program for Voluntary Disclosure period as follows:
3. Is the Special Program on Voluntary Disclosure offered annually? If yes, are the same penalty rates offered?
No. The Special Program on Voluntary Disclosure is only offered from 03 November 2018 until 30 June 2019.
4. What is the key difference between voluntary disclosure under this Special Program for Voluntary Disclosure and the previous voluntary disclosure offer?
5. Under this Special Program for Voluntary Disclosure, am I allowed to claim expenses that I have not previously claimed?
Not qualified. This Special Program for Voluntary Disclosure does not involve claims of expenses which would cause a reduced assessment or repayment. However, appeal on the expenses that was not previously claimed can be made in accordance with the existing appeal procedures currently in force.
6. I have received a Notice of Estimated Assessment for the year of assessment 2017 where IRBM has estimated my income higher than my actual income. Do I qualify under this Special Program for Voluntary Disclosure?
This Special Program is open for voluntary disclosure on income under reported or not previously reported. However, the tax return form for the year of assessment 2017 has to be submitted. IRBM will review the form and assessment will be raised accordingly.
7. I have income earned from Malaysia and deposited in a bank account abroad. Is this income subject to tax in Malaysia?
If yes, can I make a voluntary disclosure under the Special Voluntary Disclosure Programme, and what should I do?
Income earned from Malaysia and deposited in a bank account abroad is subject to the provisions of the Income Tax Act 1967. Taxpayer is responsible for reporting this income.
In line with the implementation of the Automatic Exchange of Financial Accounts Information (Common Reporting Standard), beginning from 2018, the Inland Revenue Board of Malaysia (IRBM) will be receiving the financial accounts information of Malaysian taxpayers held overseas annually.
Such financial accounts include money deposited in bank accounts, interest, dividend, unit trust, cash value insurance contract or annuity contract and proceeds from the sales or redemption of financial assets and shares.
Taxpayers will be able to voluntarily report their income and take one of the following actions:
(1) Taxpayers who are not registered with IRBM
will need to register for an income tax number and submit the Income Tax Return Form (ITRF) / Petroleum Return Form (PRF) / Real Property Gains Tax Return Form (RPGTRF) for the relevant year of assessment.
(2) Taxpayers who are registered with IRBM but have not submitted the ITRF / PRF / RPGTRF must submit the form for the relevant year of assessment.
(3) Tax payers who have submitted the ITRF/PRF / RPGTRF but have not reported the correct information of the income / gains on disposal of asset(s) for any year of assessment can submit a written declaration or e-mail.