IRB Offers Flexibility to Employers and Taxpayers

The Inland Revenue Board (IRB) is giving employers the flexibility to send in forms related to their foreign workers' income tax. They can submit through email, hand delivery or by post until December 31, 2021.

The IRB said the forms are:

• CP21: Notification of worker leaving the country, 
• CP22: Notification of new worker, 
• CP22A: Notice of cessation of employment, including due to death for private sector workers, and
• CP22B: Notice of cessation of employment, including due to death for public sector workers.

In a statement today, the IRB said, "Realising the difficulty of employers in fulfilling their responsibilities in the Covid-19 pandemic that has not yet subsided, the IRB has agreed to provide flexibility to employers." 

Previously, employers had to submit the forms online at e-SPC, hand delivery or through post following the amendments to subsections 83 (2), (3) and (4) of the Income Tax Act (ITA) 1967.

The IRB said beginning January 1, 2022, the organisation would re-implement the submission method according to the amendments set. 

According to IRB, it is an offence to delay or fail to submit CP21, CP22, CP22A and CP22B forms. Under subsection 120 (1) of the ITA 1967, if convicted, one is punishable by a fine of not less than RM200 or not more than RM20,000, imprisonment not over six months, or both. 

 

Flexibility for taxpayers affected by lockdown

The IRB is also offering flexibility to taxpayers affected by the Covid-19 pandemic and the total lockdown.

IRB is offering the deferment of payment of penalties related to their tax obligations to 2022, as long as taxpayers comply with paying the principal amount of tax payable. 

The penalties listed in the offer are imposed under the ITA 1967, Property Gains Tax Act 1976 and Stamp Act 1949.

In a statement, IRB said that the flexibility aims to ease taxpayers' burden in settling their tax arrears and tax penalties. 

This flexibility is only offered to those affected by the pandemic only.

The IRB has also considered tax payment rescheduling applications for taxpayers who have lost their income source or faced issues resolving tax arrears because of the total lockdown.

According to the IRB, if the taxpayer has a strong reason, it will consider reviewing the penalty imposed. It also said that taxpayers are required to appeal against the penalties imposed, and it will consider the appeal on a case-by-case basis. 

The IRB emphasised that the flexibility provided only applies to taxpayers whose income has been affected due to the Covid-19 pandemic and the total lockdown. It said that taxpayers who are not affected must continue paying taxes. 

It said that taxpayers who want to apply should contact the IRB Branch office that manages their income tax files. 

 

Contact the IRB for more information

You can make inquiries by contacting the IRB via Hasil Care Line at 03-8911 1000 / 603-8911 1100 (overseas) or Hasil Live Chat or Feedback Form on the IRB's official portal.

 

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