Govt Says Only Those Earning RM4,000 & Above Must Declare Income Under SVDP

Have you guys gotten any emails or letters from the Inland Revenue Board of Malaysia (LHDN) lately?

Well, LHDN has announced that individuals and businesses that earn at least RM4,000 a month have to declare their income under the Special Voluntary Disclosure Programme (SVDP), reported The Star.

While many emails and letters were sent out to citizens, only those with “monthly employment income of RM4,000 and above” have to respond.

Source: the star

“For those carrying on a business other than a private limited company with an annual income of RM48,000 (or RM4,000 a month) after deducting approved operational expenses and capital allowances, these people are still required to register as taxpayers and declare the income to LHDN. Taxpayers can ignore the letters and e-mails received from LHDN if the income received is less than the amount mentioned,” they said in a statement yesterday (3 Feb).

So anybody who earns less than RM4,000 can go ahead and throw away those letters.

LHDN has also mentioned that taxpayers who have already declared their income also do not need to respond, as the letters were general notifications informing the public of the SVDP.

The SVDP is basically a programme encouraging taxpayers to declare unreported income by offering heavily-reduced penalty rates.

Source: berita harian

Under the Income Tax Act (ITA) 1967, the penalty for tax evasion can go up to RM20,000 and/or imprisonment plus 300% of the tax underpaid. So yeah, if you’re eligible, now would be a pretty good time to grab those reduced rates.

The SVDP scheme, which started on November 3, 2018, will run until June 30, 2019. So for any of our readers that apply, please be responsible citizens and pay those taxes.

For the rest of us who are broke, here are some tips on how to save some of that hard-earned cash. For more information, you can visit the nearest LHDN office or call them at 1-800 88 5436 or email ym.vog.lisahobfsctd-762f0b@alerakusnaukagnep.

So what do you guys think about this programme? Is it a good way for the government to get back lost taxes? Is it too lenient on tax evaders? Let us know your thoughts in the comments!

Also read: 5 Scary Reasons M’sian Millennials May Not Have Enough Money Saved Up For Rainy Days