Malaysia: Special Voluntary Disclosure Program 2.0


published on 19 June 2023 | reading time approx. 2 minutes


In the tabling of the Revised Budget 2023, it was announced that the Special Voluntary Disclosure Program (SVDP) would be re-introduced to incentivize taxpayers who have not paid or underpaid their taxes. The SVDP 2.0 running from 6 June 2023 to 31 May 2024 will allow for both, individual and corporate taxpayers with unpaid or underpaid taxes to make a voluntary disclosure without any penalties being imposed, i.e., 0 per­cent penalty and 0 percent surcharge. The SVDP 2.0 covers both, direct and indirect taxes. 





What is covered by the SVDP? 

  • New taxpayers (regardless of whether the person has a Tax Identification Number (“TIN”) and are reporting income for the first time; 
  • existing taxpayers who have reported income to the Malaysian tax authorities but have under-declared or undeclared income; 
  • unreported disposal of assets, i.e., real property and shares in real property companies; 
  • executed instruments that have not been duly stamped after the time for stamping; 
  • transfer pricing adjustments which are subject to the surcharge under Section 140A(3C) of the Malaysian Income Tax Act. 


1. Direct Tax 
  • Corporate Income Tax
  • Personal Income Tax
  • Real Property Gains Tax (“RPGT”)
  • Stamp Duty
  • Transfer Pricing 
Covered years of assessment (“YA”) 
  • New taxpayers – YA 2022 and prior 
  • Existing taxpayers – YA 2021 and prior 
  • RPGT – Assets disposed in YA 2022 and prior 
  • Stamp duty – Agreements executed on or before 1 May 2023
2. Indirect Tax 
  • Sales Tax
  • Service Tax
  • GST
  • Tourism Tax
Covered period
Indirect taxes payable up to 28 February 2023


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: 1. instalments until 31 May 2024 – no supporting documentation required; 2. 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. 


  • Voluntary disclosure will be accepted by the IRB in good faith. Voluntary disclosure applications will be finalized within 14 days from the date of submission; 
  • documentation required for voluntary disclosure is far less onerous than during a tax audit; 
  • subject to conditions, voluntary disclosure may limit the risk of a tax audit in the future; 
  • no penalty and surcharge for voluntary disclosure. 
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