Updated guidelines and Frequently Asked Questions (FAQs) for the Special Voluntary Disclosure Programme (SVDP) 2.0

4.

(New)

Tax rate amendment is not part of the income/expenses that can be reported/claimed in SVDP 2.0. The scope of SVDP 2.0 covers:

a. Declaration of undeclared/under-declared income, overclaimed/disallowed expenses/ claims, overclaimed relief/deductions/ rebates and overclaimed capital allowances/ incentives;

b. Declaration of asset disposal; and

c. Stamping of documents/agreements that are not stamped within the stipulated time.

7.

(Updated)

The new taxpayers referred to under SVDP 2.0 are as follows:   

a.     Taxpayers who have yet to obtain or have obtained Tax Identification Number (TIN);

b.     Taxpayers who do not have any tax transaction in IRB’s records (taxpayers are deemed to have tax transactions if an estimated assessment has been raised/has made a Monthly Tax Deduction (MTD) in which taxpayer is regarded to have opted not to submit ITRF and the MTD is regarded as final tax; and/or

c.     Taxpayers who have declared income to the IRB for the first time.

23.

(New)

IRB will issue a Special Voluntary Disclosure Programme 2.0 Letter to taxpayers who meet the eligibility requirements of SVDP 2.0.

For taxpayers who have submitted a voluntary disclosure through ITRF/RPGTRF via e-Filing and meet the eligibility requirements, taxpayers can contact the nearest State IRB/Special Branch to obtain the Special Voluntary Disclosure Programme 2.0 Letter.

24.

(New)

Voluntary disclosures should be made through the following methods:

a.     For new taxpayers:

Tax agent must submit ITRF through the Tax Agent e-Filing (TAeF) System.

b.     For existing taxpayers:

          i.      Have not submitted ITRF/RPGTRF.

Tax agent must submit ITRF through the TAeF System.

         ii.      Has submitted ITRF but there is                                 undeclared income.

Tax agent needs to log in to MyTax Portal to submit the SVDP 2.0 Additional Income Reporting Form and tax computation by using individual ID and choose Tax Agent Category.

Tax agent needs to enter the taxpayer's information by ensuring that the taxpayer's information is accurate and then upload the SVDP 2.0 Additional Income Reporting Form and tax computation. The tax computation should only be submitted by taxpayer with company, business and partnership file category.

25.

(New)

29.

(New)

Audit/investigation action will not be carried out in the future for the YA in which the voluntary disclosure is made. 

However, audit / investigation action can be taken for the year of assessment involved for the following circumstances:

a.     If voluntary disclosure is made on non-TP issues only and it is found that there is a risk on TP issues, audit/investigation action can be taken on the TP issues and if voluntary disclosure is made on TP issues only, audit and investigation can be taken on issues other than TP.

b.     Tax payment on the voluntary disclosure has been failed to be made within the stipulated time period.

40.

(New)

The paragraph means voluntary disclosures will be accepted for TP issues involving upward TP adjustments regardless whether it resulted in assessment or not. 

For applications involving downward TP adjustments, only taxpayers engaged in domestic controlled transactions and have a positive net tax effect are eligible to make voluntary disclosure on condition that both parties make voluntary disclosure on TP.

41.

(Updated)

Taxpayers who carry out controlled transactions with related companies are eligible for voluntary disclosure for TP issues except: 

 i.     For taxpayers who carry out domestic                       controlled transactions; and

ii.      Any adjustments made under the current               TP Guidelines will not alter the amount of                tax payable or incurred by both parties.

42.

(New)

43.

(New)

If one of the related parties in that transaction have tax incentives/losses carried forward or huge unabsorbed capital allowance:

    i.   Those with only domestic controlled transactions; and 

  ii.   TP adjustment will result in positive net tax impact

will be eligible for the SVDP 2.0.  

For example, the TP adjustment has resulted to an additional tax assessment of RM200,000 for Co. A and reduced tax assessment of RM150,000 for Co. B.  In this situation, both Co.

A and Co. B are eligible for SVDP since there is positive net tax impact of RM50,000 from the voluntary disclosure.  

Illustrative example is as follows:

46.

(New)

Audit/investigation will not be carried out on the YA in which the voluntary disclosure is made pertaining to TP issues. 

However, an audit/investigation can still be conducted for any non-TP issues for that YA.