How to amend your income tax return

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Finally you’ve successfully submitted your income tax return. All is well…until you discover that you've made a mistake in your income tax return. What do you do now?

Don’t worry, according to the IRB (Inland Revenue Board) Of Malaysia you can make an amendment.

Correction of any error made on form submitted manually or online (via e-filing) can be made by writing a letter detailing the mistakes made and enclosing documents (purchase receipts, invoices, etc.) to support your application.
The letter and supporting documents must be submitted to the branch that handles your tax file.

There are two types of amendments:

  • Self amendment
  • Ordinary amendment

 

Self amendment

You can choose to self-amend, provided you satisfy two conditions:

  1. You’ve submitted your Income Tax Return Form (ITRF) on time.
  2. The amendment is made within 6 months after the ITRF submission due date.

You can make self amendment by submitting an Amended Return Form (ARF) to the branch that handles your income tax file. Self amendment is allowed only once for each year of assessment. You can download the ARF form from the forms download page.
You are allowed to make self amendment on information or assessment to correct mistakes in the ITRF relating to :

  • Income under declared / not declared
  • Expenses / other claims over claimed
  • Capital allowances / incentives / reliefs over claimed

Self amendment by submission of ARF can result in the following changes :

  • From not liable to taxable – original assessment notice;
  • From taxable to additional tax – additional assessment notice; or
  • From repayment to reduced repayment – original assessment notice

 

Ordinary amendment

For amendments to be made in situations other than those mentioned above (i.e ordinary amendment), the taxpayer is not required to submit ARF. Instead, he can forward a detailed letter on the mistakes made and enclose documents (purchase receipts, invoices, etc.) to support his application. The letter and supporting documents must be  forwarded to the branch which handles his income tax file.

 

If the Director General makes an amendment and issues an amended assessment within 6 months from submission of ITRF, the taxpayer is not eligible to submit ARF to the Director General. If the taxpayer wishes to make an amendment (voluntary disclosure) to the assessment raised by the Director General, he must forward a letter to IRB.

 

Rate and Computation of Increase in Tax

The original assessment or additional assessment self raised by the taxpayer is subject to an increase in tax. The taxpayer is required to fill in the column for tax increase in the ARF .
If the ARF is submitted:

  • Within a period of 60 days from the due date for submission of ITRF, the amount of increase in tax charged shall be 10% of the amount of such tax payable or additional tax payable.
  • After the period of 60 days but not later than 6 months from the due date for submission of ITRF, the amount of increase in tax charged shall be determined in accordance with the following formula :

    B +   [(A + B) x 5%]

    Where:
    • A= the amount of such tax payable or additional tax payable;
    • B= 10% of the amount of such tax payable or additional tax payable (A X 10%)

Acronyms used in this article:

  ITRF- Income Tax Return Form
  ARF -Amended Return Form
  IRB -Inland Revenue Board of Malaysia (LHDN -Lembaga Hasil Dalam Negeri Malaysia)

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