Tax

What is SVDP 2.0?

The Special Voluntary Disclosure Programme (SVDP) 2.0 offers taxpayers a chance to proactively disclose their income and accurate tax calculations in adherence to existing IRBM regulations. This initiative not only promotes adherence to current tax guidelines but also incentivizes taxpayers to fulfill their tax obligations within the specified timeframe.

When is the Lhdn Special Voluntary Disclosure Program 2023?

From 06 June 2023 until 31 May 2024.

Broadly, SVDP 2.0 provides an opportunity for taxpayers to report their correct tax position and rectify errors made in the past. The IRB will accept the VDs in good faith and no supporting documents are required for the VDs made. No audit or investigation will be undertaken for the years of assessment (YAs) for which the VDs are made.

SVDP 2.0 is offered to all categories of taxpayers (including non-resident taxpayers), except the employer file category. It applies to:

New taxpayers who have not declared their income, for YAs up to YA 2022
Existing taxpayers who have not declared their income or reported the correct taxable income, for YAs up to YA 2021
New and existing taxpayers who have not submitted their real property gains tax return form (RPGTRF) for the disposal of assets, for YAs up to YA 2022
Late submitters of instrument(s) for stamping, for instrument(s) executed (signed) on or before 1 May 2023
VDs resulting in an assessment or additional assessment raised on the taxpayer, except for transfer pricing (TP) cases
VDs for TP issues, which are subject to the VD criteria and procedures for TP cases as set out in the TP Audit Framework. TP surcharges may apply.

However, SVDP 2.0 does not apply to:

YAs where the IRB has commenced a tax audit or investigation
Non-taxable, reduced assessment or tax repayment cases, except for TP cases
Taxpayers who are under criminal investigation or prosecution proceedings initiated by the IRB
Further details will be provided in a special tax alert which will be issued in due course.

E-Invoicing?

Are u ready?

The Inland Revenue Board (IRB) had announced that the e-Invoicing initiative will be implemented in phases beginning August 2024. Several guidelines have been issued to provide step-by-step guidance of key aspects of e-Invoicing.

ensuring full adherence to local regulations, the latest European Union standards, and contemporary data transfer protocols, guaranteeing compliance with all legal and regulatory requirements.

What are the key benefits?

Optimised payment process

Optimizing document exchange processes ensures swift interactions with all business partners, leading to quicker payment cycles, enhanced data accuracy, and a reduction in document-related errors.

Reduced Operational Costs

transitioning from paper-based document exchange to an efficient digital system can yield substantial cost savings of approximately 50-60%. On average, businesses can expect a payback period of 0.5-1.5 years. The Politecnico di Milano indicates that each invoice processed digitally retains an economic benefit ranging from €4 to €12

STRONGER BUSINESS RELATIONSHIPS

implementing secure and transparent data exchange practices with all partners leads to streamlined invoice processing, resulting in accelerated payment timelines for suppliers.

FULL COMPLIANCE WITH LEGAL REGULATIONS