Special Income Remittance Programme ends today - IRB

KUALA LUMPUR: The Special Income Remittance Programme (PKPP) for Malaysian tax residents with foreign sourced income ends today, the Inland Revenue Board (IRB) said in statement.

The IRB said the termination comes following the announcement by the Ministry of Finance (MOF) on Dec 30 on the improvement of tax treatment policy on foreign income.

"The decision to terminate the programme was made after taking into account the tax exemption announced by the MOF on income from foreign sources received in Malaysia by resident individuals (other than partnership income).

"The same exempt treatment is also given to dividend income from foreign sources brought in by companies and limited liability partnerships," read the statement.

The IRB said the exemption was subject to the conditions stated in the Income Tax (Exemption) Order which would be issued under section 127 of the Income Tax Act 1967.

However, income from other foreign sources that are not exempted and brought into the country from Jan 1 last year must be reported in the Return Form for the relevant year of assessment.

Foreign income that is still subject to tax and brought into Malaysia during the period Jan 1, 2022 to June 30, 2022 will be taxed at a concession rate of three per cent as announced in Budget 2022 and provided for uder the Finance Act 2021.

After the expiry of the period, the original tax rate would apply according to the taxpayer category, it added.

For inquiries and feedback contact Hasil Care Line at 03-8911 1000/603-8911 1100 (Overseas), Hasil Live Chat and the official IRB portal at https://maklumbalaspelanggan.hasil.gov.my/MaklumBalas/ ms-my/.

On Nov 16 last year, the IRB offered the PKPP to residents in Malaysia who have income kept abroad and this was in line with the abolition of tax exemption on income from foreign sources as announced by the Finance Minister when tabling the 2022 Budget.

-- BERNAMA