IRB offers Special Income Remittance Programme to Malaysian Residents

IRB offers Special Income Remittance Programme to Malaysian Residents

PUTRAJAYA: The Inland Revenue Board (IRB) is offering a Special Income Remittance Programme (PKPP) to residents in Malaysia who have income kept abroad which will be implemented from Jan 1 to June 30 next year.

In a statement yesterday, IRB said the move was in line with the removal of tax exemption for foreign sources of income as announced by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in the Budget 2022.

It said under the programme a tax rate of three percent (gross) will be imposed on income brought in during the period as proposed under the Finance Bill 2021, adding that it would not carry out any audit review, investigation or impose a penalty on income brought in during the PKPP period as all income brought in will be accepted in good faith.

It also said to be eligible for the programme the income must be brought in or remitted within the PKPP period and taxpayers must make payments according to normal payment arrangements that have been set for the year of assessment 2022 or 2023, whichever is applicable.

The programme does not involve income derived from Malaysia which is subject to tax for the year of assessment 2021 and subsequent years of assessment and is remitted or brought back during the PKPP period, it added.

IRB explained that after the expiration of the special programme, it would review and scrutinise the income information of Malaysian residents kept abroad received through tax information exchange agreements with other countries.

“If based on the review, it is found that income kept abroad originating from Malaysia has not been declared, additional assessment can be raised along with penalties under the Income Tax Act 1967,” read the statement.

In the recent tabling of Budget 2022, Tengku Zafrul announced that Malaysian residents will be taxed on their foreign-sourced income that is received in Malaysia, effective from January 1 next year. — Bernama