The Inland Revenue Board of Malaysia (IRBM) said in a statement today that the voluntary disclosure of the SVDP made for the 2017 year of assessment and the previous years would be accepted in good faith.
“To date, more than 225,000 tax payers had participated in the first phase of SVDP which will end on March 31.
“As such, tax payers are advised to immediately grab the opportunity offered and not wait until the last minute of the programme,”the statement said.
When tabling the 2019 Budget, Finance Minister Lim Guan Eng announced the SVDP which was a government initiative in implementing tax reforms to encourage tax payers to voluntarily declare their income and reduce leakages in the country's revenue.
The SVDP offers a reduction in the penalty rate from 300 per cent to 10 per cent if the declaration is made in the first phase from Nov 3 2018 to March 31 this year, and subsequently to 15 per cent if the declaration is made in the second phase beginning April 1 until June 30 this year.
According to the statement, Malaysia together with more than 100 nations under the Automatic Exchange of Information (AEOI) initiative concerning financial information, particularly the ownership of bank accounts had begun to receive such information from September last year.
To date, the IRBM had received more than 455,000 bank accounts opened by Malaysian nationals received from 57 nations.
“As such, the SVDP offers tax solutions to those having bank accounts abroad from income generated from within Malaysia but such incomes have yet to be reported to IRBM,”the statement added.
The statement said letters and e-mails notifying tax payers with bank accounts abroad were in the process of being issued by IRBM.
“Thus, the government calls on tax payers with bank accounts abroad who have received notification letters from the IRBM to immediately go to any IRBM branch to give clarifications and subsequently participate in the SVDP if necessary,”the statement said.