Special Voluntary Disclosure Programme (SVDP) 2.0

Special Voluntary Disclosure Programme (SVDP) 2.0

In Budget 2023, it was announced that the Inland Revenue Board (IRB) and Royal Malaysian Customs Department (RMCD) would be launching new SVDPs. The SVDPs will grant taxpayers full penalty relief for voluntary disclosures (VDs) made within a stipulated time period.

On 2 June 2023, the IRB published on its website the relevant documents to outline the details for SVDP 2.0, including the following:

• Operational Guidelines No. 2/2023 – SVDP 2.0
• Frequently Asked Questions (FAQs) 

The Programme is effective from 6 June 2023 to 31 May 2024.

Broadly, SVDP 2.0 provides an opportunity for taxpayers to report their correct tax position and rectify errors made in the past. The IRB will accept the VDs in good faith and no supporting documents are required for the VDs made. No audit or investigation will be undertaken for the years of assessment (YAs) for which the VDs are made.

SVDP 2.0 is offered to all categories of taxpayers (including non-resident taxpayers), except the employer file category. It applies to:

• New taxpayers who have not declared their income, for YAs up to YA 2022
• Existing taxpayers who have not declared their income or reported the correct taxable income, for YAs up to YA 2021
• New and existing taxpayers who have not submitted their real property gains tax return form (RPGTRF) for the disposal of assets, for YAs up to YA 2022
• Late submitters of instrument(s) for stamping, for instrument(s) executed (signed) on or before 1 May 2023
• VDs resulting in an assessment or additional assessment raised on the taxpayer, except for transfer pricing (TP) cases
• VDs for TP issues, which are subject to the VD criteria and procedures for TP cases as set out in the TP Audit Framework. TP surcharges may apply.

However, SVDP 2.0 does not apply to:

• YAs where the IRB has commenced a tax audit or investigation
• Non-taxable, reduced assessment or tax repayment cases, except for TP cases
• Taxpayers who are under criminal investigation or prosecution proceedings initiated by the IRB

Further details will be provided in a special tax alert which will be issued in due course.

For reference, the SVDP 2.0 documents are accessible via the following link: Special Voluntary Disclosure Programme (SVDP) 2.0 | Lembaga Hasil Dalam Negeri Malaysia