Tax amnesty
2016
Reduction and waiver of
tax penalties
Notes:
* These measures were announced by Malaysias Prime Minister and Finance Minister, YAB Dato Sri Mohd Najib bin Tun Abdul Razak,
on 28 January 2016.
** RPGT denotes Real Property Gains Tax
Source:
Inland Revenue Boards media release on Reduction of Penalty For Voluntary Disclosure And Waiver of Tax Increase For The Settlement
Of Tax Arrears dated 10 February 2016
Take 5: Tax amnesty 2016
The Malaysian Inland Revenue Board (IRB) has followed through to announce that
there will be a reduction of penalties and waiver of tax increases to encourage
voluntary disclosures and early settlement of tax arrears (the Amnesty)*.
Who
can
apply?
Merit based
Tax audit
Open years
Documentation
Depends on the
IRBs discretion
based on the
merits of the case
Possibility of
triggering a tax
audit by the IRB
Not clear on
the years of
assessment to
be audited by
the IRB
1 March 2016
to
15 December 2016
Notes:
* The tax amnesty for indirect taxes will be covered in the next issue of EYs Take 5
** Taxpayers deriving income from Malaysia who are looking for opportunities to regularize their tax positions
Take 5: Tax amnesty 2016
Penalty rates
based on the
tax law
Penalty rates
(Concessionary rate)
Up to 300%
Up to 300%
Up to 100%
35%***
Up to 100%
Up to 100%
Up to 100%
45% or 100%****
Up to 100%
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*
Based on the Garis Panduan Operasi Bil 1 Tahun 2016 Tawaran Pengurangan Penalti Dan Penghapusan Kenaikan Cukai issued
by the IRB on 10 February 2016
**
Based on the Garis Panduan Operasi Bil 1 Tahun 2015 Pengenaan Penalti Di Bawah Subseksyen 112(3) Akta Cukai Pendapatan
1967 issued by the IRB on 5 March 2015
*** Based on the Petroleum Tax Audit Framework, the Tax Investigation Framework and the Tax Audit Framework issued by the IRB on
1 April 2013, 1 October 2013 and 1 February 2015 respectively
**** The penalty rate for taxpayers who are listed in the Monitoring Deliberate Tax Defaulter Programme is 100%
Up to 300%
Full payment: 5%
Payment in 6 instalments: 8%
Fully waived
Fully waived
10%
Payment by instalments
(other than a company, limited liability
partnership, trust body or co-operative society)
Fully waived
10%
Fully waived
Fully waived
Fgl]k29ddl`]h]fYdla]kYZgn]j]][ll`]hgkalagfo`]j]fghjgk][mlagfakafalaYl]\&
*
Based on the Garis Panduan Operasi Bil 1 Tahun 2016 Tawaran Pengurangan Penalti Dan Penghapusan Kenaikan Cukai issued
by the IRB on 10 February 2016
Considerations
Undertake a withholding
tax review on amounts paid
or credited to non-residents
Take 5 - Malaysia
principal hub incentive
Take 5 - Budget
2016 Malaysia
Take 5 - Recalibration
of Budget 2016
ey.com/my
Contacts
Yeo Eng Ping
Tax Leader,
Ernst & Young Tax Consultants Sdn. Bhd.
Asean Tax Leader, EY
Amarjeet Singh
Partner, Business Tax Services
Ernst & Young Tax Consultants Sdn. Bhd.
Farah Rosley
Partner, Business Tax Services
Ernst & Young Tax Consultants Sdn. Bhd.