Special Voluntary Disclosure Program 2.0

Special Voluntary Disclosure Program is back.

Today, I attend Chartered Tax Institute of Malaysia webinar Special Voluntary Disclosure Programme (SVDP) 2.0 (Southern).

Key Takeaways - Direct Tax

Scope (Condition: Additional tax payable):

o Income that has not been declared

o Overclaimed expenses, reliefs, capital allowances, or tax incentives

Categories of Taxpayers:

o New taxpayers (YA 2022 and preceding years)

o Existing taxpayers (YA 2021 and preceding years)

o Taxpayers who have disposed of assets (YA 2022 and preceding years)

o Duty payers (agreements executed (signed) on or before 1/5/2023 for stamping from 6/6/2023 to 31/5/2024)

Full and frank disclosure required via a declaration ... good faith

Transfer Pricing (even permissible for lower tax payable):

o Subject to the criteria and procedure for VD of TP cases as outlined in the Transfer Price Audit Framework currently in effect

o Failure to comply with submission of TP document requirements will be considered incomplete, and VD will not be accepted; the surcharge rate offered is 0%

Payment Rule:

o Full payment due within 30 days from the date of notice

o Installments based on payment rules (final due date is 31/5/2024)

o Failure to pay tax within the designated period will result in an increase in tax, potential legal action, and possible future audits or investigations

Management account is acceptable during this period; audited account must be completed subsequently

Multiple VDs in 1 YA are permitted

WHT penalty does not apply

Use Tin for submissions (except stamp duty) via the Mytax portal

Individuals must file via the Mytax portal until the system allows tax agents to submit on behalf of taxpayers

VD is not applicable for incorrect tax rates (SME concession vs full)

VD is permissible for provisional tax FORM J under S90(3); normal appeals are for lower tax

Not applicable to taxpayers under audit or investigation

Applicable to prior-year adjustments resulting in higher tax

Key Takeaways - Indirect Tax

Scope :

Sales tax , Service Tax, GST, Tourism Tax (exclude custom duty, excise duty)

Scope of tax :

All taxes/penalties liable up to 28/2/23 exclude

o Investigation case

o Court/tribunal case

o Audit case

o A bill of demand has been issued

Voluntary Disclosure

o Good faith

o Paid with the period Underreported tax

o Remission penalty 100%

o Taxable period declared under VD will not be audited

T&C

o Eligible to participate (VDP-02)

o Apply under prescribed form (VDP-01)

o Payment made within the period

o No element of fraud

PS Authored by Mr Koh Teck Peng, the group principal in his personal LinkedIn bit.ly/3PXZZgz

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