Voluntary tax disclosure also targets 'TikTokers', influencers - IRB

 

The Inland Revenue Board’s (IRB) Special Voluntary Disclosure Programme (SVDP) 2.0, which will run from June 1, 2023, to May 31, 2024, also targets “TikTokers” and social media influencers as individual taxpayers.

IRB chief executive officer Mohd Nizom Sairi said the SVDP 2.0 is the best opportunity for “Tiktokers” and influencers to come forward to be registered and report their taxable income through a voluntary disclosure in good faith with no penalty.

“We actually have a special initiative for the ‘influencers’ category, where we will meet and engage with them to understand and get feedback on what form of income they receive.

“We provide advisory services to educate and give awareness to these people to come forward and tell them how to report income in this sector.

“Because they are in a public environment, (this is) a reminder and not a warning in that the IRB sees what is happening (social media earners being untaxed in the shadow economy), so come forward, this is the best opportunity in this SVDP - come forward and we start on a good footing for the future together,” he said after a panel discussion of the Deloitte TaxMax programme -- The 48th Series today.

He said since last year, IRB has also registered individuals aged 18 and above using the Tax Identification Number (TIN) initiative to compare Tiktokers and Influencers with existing taxpayer data.

“Those who are over 18 years old do belong (identified in a group) or have a TIN, they are in the IRB database. In this programme, we compare existing taxpayers, we have the B40 group which is in the database of government-aid recipients.

“With this TIN, we have those who are not in both categories and it is likely that most of them are those who are not yet eligible to pay tax but are also not eligible to receive government assistance.

“There is a large number out there but of course or maybe there are also those who are eligible to pay tax, not eligible for government assistance but have no income tax file before, so we estimate that from this number, we expect (voluntary disclosure) and we hope they will come forward,” he said.

He said the SVDP programme this time focuses on individuals or businesses that have never been registered before as taxpayers.

SVDP 2.0 targets 50,000 taxpayers with an estimated tax assessment amounting to RM1 billion and no penalty will be imposed on them as before, which was between 10 and 15 percent in the 2019 budget.

“For example, for those who started a business three or four years ago, maybe at that early stage their income was small and they did not pay attention to the taxation element but now when their income is big, we always hear that they are afraid and don’t know how to get started (to be registered) as a taxpayer because they have been left behind (undeclared for) several years.

“So we will focus on this group without covering up existing (eligible) taxpayers if they, for any reason are left behind or are under-reported or who have overclaimed on expenses during this period,” he said.

- Bernama