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SPECIAL VOLUNTARY DISCLOSURE PROGRAMME 2.0 (SVDP 2.0)

The Ministry of Finance has announced in the Revised Budget 2023 that the SVDP 2.0 will be reintroduced and it covers both, direct and indirect taxes. The SVDP 2.0 will run from June 6, 2023 to May 31, 2024. This programme provides an opportunity for taxpayers to increase their level of tax compliance based on the AES (Awareness, Education, Service) concept practised at the IRBM.

BENEFITS OF SVDP 2.0

  • Voluntary disclosure will be accepted by the IRB in good faith.
  • Voluntary disclosure applications will be finalised within 14 days (30 working days for transfer pricing cases) from the date of submission; .
  • No audit or investigation will be undertaken for the years of assessment for which the voluntary disclosures are made.
  • No penalty/ surcharge for voluntary disclosures made within a stipulated time period.


WHO IS ELIGIBLE TO PARTICIPATE IN SVDP 2.0

No.Category of tax payerYear of Assessment (YA) Covered
1New taxpayers (regardless of whether the person has a Tax Identification Number (“TIN”) and are reporting income for the first time.YA 2022 and prior years
2Existing taxpayers who have reported income to the Malaysian tax authorities but have under-declared or undeclared income.YA 2021 and prior years
3Unreported disposal of assets, i.e., real property and shares in real property companies.Assets disposed in YA 2022 and prior years
4Executed instruments that have not been duly stamped after the time for stamping.Agreements executed on or before 1 May 2023 for stamping from 06 June 2023 to 31 May 2024
5Transfer pricing adjustments which are subject to the surcharge under Section 140A(3C) of the Malaysian Income Tax Act.
6Indirect tax
- Sales tax
- Service tax
- GST
- Tourism tax
(excludes import taxes)
Covered period:
Indirect taxes payable up to 28 February 2023

* SVDP 2.0 is also applied to all categories of non-resident taxpayers.

PAYMENT OF OUTSTANDING TAX UNDER SVDP 2.0

Tax payments under SVDP 2.0 must be settled:

  • Within 30 days from the date of issuance of notice by the Malaysian tax authorities (one lump sum); or
  • In instalments, application to be submitted through the MyTax Portal via the SVDP 2.0 Instalment Payment Application Form:
    i) Instalments until 31 May 2024 – no supporting documentation required
    ii) Instalments beyond 31 May 2024 – supporting documentation is required, i.e., 3 months bank statement, cash flow analysis for the next 12 months including current month; and latest property details.

Failure to settle the tax payments within the stipulated period will result in the imposition of a tax increase based on the prevailing provisions of the law. If the outstanding tax remains unpaid, legal action can be taken against the taxpayer and audit/investigation may be carried out in the future. 

THIS PROGRAMME IS NOT APPLICABLE FOR THE FOLLOWING:

  1. Direct Tax
    • Audit action taken on taxpayers has been commenced for the year(s) of assessment involved.
    • Revision of tax return resulting to reduce assessment except for transfer pricing cases.
    • Investigation action has been initiated or prosecution proceedings following a criminal investigation have been filed in court.
    • The employer file category is not eligible for SVDP 2.0
  2. Indirect tax
    • Bills of Demand have been issued by the RMCD
    • Any person who is under audit for taxable period until 28 February 2023

 

HOW DC TAX SERVICES SDN BHD CAN HELP

  1. Consultation for SVDP 2.0. programme for new and / existing tax payers.
  2. Preparation of tax computation and submission of income tax return for new/ existing tax payers
  3. Submit SVDP 2.0 Additional Income Reporting Form
  4. Apply for tax instalment of tax payable per the notice of assessment raised under the SVDP 2.0
  5. Registration of TIN no. for new tax payer
  6. Submit a document/ agreement for stamping


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