Special Voluntary Disclosure Programme / Voluntary Disclosure Programme 2.0

Special Voluntary Disclosure Programme / Voluntary Disclosure Programme 2.0

Following the announcement on the reimplementation of the Special Voluntary Disclosure Programme (“SVDP 2.0”) in the revised Budget 2023, guidelines and Frequently Asked Questions (“FAQ”) on SVDP 2.0 were issued by the Inland Revenue Board of Malaysia (“IRB”) on 2 June 2023.
 
SPECIAL VOLUNTARY DISCLOSURE PROGRAMME 2.0

Under SVDP 2.0, no penalty or surcharge will be imposed on taxpayers who participate in the programme. The IRB will also accept the voluntary disclosure made by taxpayers in good faith.
 

VOLUNTARY DISCLOSURE PROGRAMME 2.0 FOR INDIRECT TAXES

During the Budget 2023 speech, the Minister of Finance also announced the reintroduction of the Voluntary Disclosure Programme for Indirect Taxes (“VDP 2.0”). This programme will be effective from 6 June 2023 until 31 May 2024. Businesses now have an opportunity to voluntarily disclose any outstanding indirect taxes without facing any penalties.

SVDP/VDP 2.0 provides an opportunity for taxpayers to rectify any non-compliance or unreported income in prior years with the benefit of not triggering any penalties or compounds. It is timely for corporates, businesses and individuals to review their direct tax and indirect tax compliance records as well as compliance with stamp duty requirements to assess if a voluntary disclosure should be made.
 
Proper consultation with your tax advisers should be made to manage your risks prior to the participation in SVDP/VDP 2.0.

Read our publication for more details on the features of SVDP/VDP 2.0.

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At BDO, we are able to assist you with the following:
  • Review your past records to ensure proper declaration of income to the IRB or RMCD.
  • Discuss your business transactions and assess any tax issues identified.
  • Identify the areas of non-compliance and assess your eligibility for SVDP/VDP 2.0.
  • Prepare the relevant tax computations to quantify the tax exposure for a participation in SVDP/VDP 2.0.
  • Assist you with the submission of the tax return and liaise with the tax authorities in relation to SVDP/VDP 2.0.