KUALA LUMPUR, April 7 ― The Cabinet has decided to extend the first phase of the Special Voluntary Declaration Programme (SVDP) until June 30 this year following encouraging feedback from taxpayers.
In a statement issued today, Finance Minister Lim Guan Eng announced that the Inland Revenue Board (IRB) has to date received a total of 381,979 voluntary tax declarations as of March 31.
“The Cabinet has decided to extend the first phase of the SVDP with the imposition of a low penalty rate of 10 per cent on the amount of tax payable until June 30.
“The government hopes that with this extension, more taxpayers will participate in the SVDP to ensure they enjoy the low penalty rates and subsequently reduce their tax burden,” he said in a statement here.
Lim said the second phase of the SVDP with the imposition of a penalty rate of 15 per cent on the amount of tax payable will therefore begin on July 1 and end on September 30 this year.
“From October 1, a penalty rate of 45 per cent on the amount of tax payable will be imposed on those who failed to submit their Income Tax Return Form (BNCP) and registered taxpayers who have failed to submit their BNCP in a regular manner,” it said.
According to Lim, voluntary declarations for the financial year ending December 31, 2017 under the individual taxpayers category could be made while companies with financial year ending March 31 last year also eligible for voluntary declaration.
He said the SVDP will be focused on taxpayers who have overseas account and taxable income in Malaysia but yet to be reported to the IRB.
“At the same time, the government welcomes any local taxpayers who do not possess an overseas account to make any form of declaration involving income generated domestically,” the statement reads.
He said a letter of authenticity will also be issued to both individuals and companies for every declaration made through SVDP scheme by the IRB.
“The IRB will receive every declaration with open hearts, with audit or investigative measures not taken against those who do so as the IRB have received instructions from the government to stop all forms of threats against taxpayers.
“Affected parties are urged to file a complaint to IRB or the Finance Ministry if there are groups who were found to disobey the directive,” it said.
The scheme was announced during the tabling of Budget 2019 in order to encourage full reporting of previously undeclared income as part of the government's initiative on tax reforms to encourage taxpayers to voluntarily declare their income and subsequently reduce the leakage of revenue.
Taxpayers may visit nearby IRB offices or contact the IRB’s Hasil Careline at 1-800-88-5436 or 603-7713 6666 (from overseas); or send an inquiry email to: [email protected] for further inquiries.