Irb Announces Special Income Remittance Programme For Malaysian Residents


 
IRB said other criteria include the income must be brought in or remitted within the PKPP period and taxpayers must make a declaration to participate in PKPP at the latest within 30 days after the expiry of the period. — Picture by Hari Anggara

KUALA LUMPUR, Nov 16 — The Inland Revenue Board (IRB) is offering a Special Income Remittance Programme (PKPP) to Malaysian residents who have income deposited abroad.
The agency said this is in line with the abolishment of tax exemption on foreign-sourced income, which was announced by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz when tabling Budget 2022.
“The programme will be implemented from January 1 to June 30, 2022, during which a gross tax rate of three per cent will be imposed on income repatriated back as proposed under the Finance Bill 2021
“There will be no audit review, investigation or penalty on income brought in during the PKPP period; all income brought in will be received in good faith by IRB,” it said in a statement today.
IRB said other criteria include the income must be brought in or remitted within the PKPP period and taxpayers must make a declaration to participate in PKPP at the latest within 30 days after the expiry of the period.
Besides that, it said, tax payment must be made in accordance with the normal payment order prescribed for the year of assessment 2022 or 2023, whichever is applicable.
The programme does not cover income derived from Malaysia which is subject to tax for the year of assessment 2021 and subsequent years of assessment and remitted or brought back in the period of PKPP.
“After the expiration of the period, IRB will review and examine the income information of Malaysian residents deposited abroad that has been received through tax information exchange agreements with other countries.
“If the review found that the income kept abroad originating from Malaysia has not been reported, additional assessment can be imposed together with penalties in accordance with the provisions of the Income Tax Act 1967,” it said.
Therefore, IRB said taxpayers are encouraged to participate in this special programme in order to update their tax position.
It added that it would issue a list of frequently asked questions and guidelines related to PKPP to the public which could be found at IRB’s official portal. — Bernama


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