LHDN’s Voluntary Disclosure Programme To End Soon, Tax Evaders Should Come Clean
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Lembaga Hasil Dalam Negeri’s (LHDN) Special Voluntary Disclosure Programme (SVDP) is ending at the end of this month (31 May).
The programme started in June last year, so tax evaders who are looking to come clean should get to it soon.
Special Voluntary Disclosure Programme (SVDP)
The SVDP is a programme that allows taxpayers to voluntarily report their income and tax responsibilities. At the same time, it also encourages taxpayers to pay taxes within the stipulated time.
This means that under the SVDP, tax evaders who have been avoiding paying taxes have the opportunity to come clean. If they come forward and pay their taxes before the deadline, they can avoid the penalties and fines that would’ve been imposed on them.
Utilize SVDP to avoid hefty fines
According to LHDN’s CEO Datuk Abu Tariq Jamaluddin, taxpayers can still declare voluntarily after SVDP’s deadline, but they might face a hefty penalty.
In a report from The Star, the LHDN CEO stated that after SVDP ends, taxpayers who declare voluntarily will be slapped with a 15% penalty, while those who were caught by LHDN’s audit will be handed a 45% penalty.
Due to this reason, it is much better for taxpayers to voluntarily declare their income while the SVDP is still in effect.
Payment methods for high amount of taxes
In a Facebook post, LHDN also shared some updates on their ongoing effort to improve the methods for a taxpayer to pay high amounts of taxes.
In the post, LHDN stated that for high amounts of taxes, there are two methods that taxpayers can use;
- FPX payment through LHDN’s official payment portal (ByrHASiL), or
- Telegraphic transfer (TT)/ Electronic Fund Transfer (EFT)/ Interbank GIRO/RENTAS/DuitNow payment through the Virtual Account (VA) number that is generated through the e-TT system
One of the improvements LHDN made is by increasing the transaction limit to RM500,000 for individuals and RM100 million for companies. Previously, the limit was set at RM30,000 for individuals and RM1 million for companies.
However, LHDN also reminded people that while LHDN’s transaction limit has been increased, taxpayers will still need to ensure that the bank that they are paying follows that limit as well.
For example, even though the limit has been increased to RM500,000, if the taxpayers bank has set a limit of RM50,000 for each transaction, they will not be able to complete the transaction.
If you’re interested in using the SVDP to declare your income, you can get more information about the programme right here.