Available from 6 June 2023 to 31 May 2024
A voluntary tax disclosure program, also known as a tax amnesty program, is a way for taxpayers to avoid severe consequences by coming forward and paying under-reported taxes.
Under the Special Voluntary Disclosure Programme 2.0 (SVDP 2.0), taxpayers are allowed to
report any under-declared income, overclaimed expenses, relief, allowance, rebates, and incentives;
declare unreported disposal of properties or shares in real property companies; and
pay stamp duties for documents and agreements that have been executed but not stamped.
Taxpayers will receive a full penalty waiver under this programme.
When is this available?
Voluntary disclosures can be made to the Inland Revenue Board (IRB) from 6 June 2023 to 31 May 2024.
Tax payment by instalment is allowed
Tax payable arising from this programme should be paid
a. In a lump sum within 30 days from the date of IRB’s notice; or
b. By instalments.
Will IRB review the voluntarily disclosed information?
Taxpayers must accurately report their income and taxes based on IRB’s rulings.
According to IRB, during the implementation period of this programme, IRB will receive the voluntary disclosure information in good faith. Reviews will be carried out to ensure the accuracy of the computations (e.g. mathematical errors), but no audits or investigations will be conducted for the years in which voluntary income was reported.
In addition to usual direct taxes, the IRB has emphasized the importance of voluntary tax disclosure in these specific areas that deserve our attention: a. Income earned in Malaysia but kept abroad; b. Transfer pricing (related party transactions/controlled transactions); and c. Real property gain tax arising from disposals of real property companies, and In the past, we observed that IRB had given less attention to these specific areas. However, this presents a potential turning point that taxpayers should not overlook. It is crucial for taxpayers to seize this opportunity to carefully examine and correct their tax position before IRB comes knocking on the door.
Further information can be obtained here: