‘Special Program for Voluntary Disclosure’ by IBRM
On 2nd of November 2018, our government has introduced ‘Special Program for Voluntary Disclosure’ (SPVD) on their recent budget 2019 present by our own Finance Minister, Lim Guan Eng. The Inland Revenue Board of Malaysia (IBRM) has issued its own guidelines for this special program under ‘Operational Guidelines No.1/2018‘ on 3rd of November 2018. The main objective of this program is to promote the public or tax payers to voluntary report their income whether there are yet to be reported or under reported of income.
This program is eligible to all tax payers whom :-
i. Haven’t register as a tax payer at IBRM branches.
ii. Registered as a tax payer but haven’t report their income.
iii. Income Tax Return has been submitted but was wrongly submitted.
iv. Instruments has not been stamped.
This Special Program covers voluntary disclosure and payment within the stipulated period on:-
i. Income not previously declared / under declared, expenses over claimed / not allowed and reliefs / deductions / rebates over claimed;
ii. Gains on disposal of assets (real properties and shares in real property companies); and
iii. Stamping of instruments not previously stamped.
Stipulated period :-
Voluntary disclosure can be made at any time commencing from 03rd November 2018 until 30 June 2019.
The reduced rate of penalty are as follow :-
The payment has to be made in the followings manner :-
i. Tax payer must settle their tax as follows :
ii. If the taxpayer fails to settle the tax in full at the end of the stipulated period on 01/04/2019 or 01/07/2019, an increase in tax will be imposed based on the prevailing provisions of the law. If tax arrears are still unpaid, legal action will be taken accordingly.
Other important notes to be taken :-
i. This Special Program is applicable to cases under audit / investigation. However, the voluntary disclosure which has been submitted is subject to any findings of the audit / investigation.
ii. This Special Program only applies to income reported or gains on disposal of assets for the year of assessment 2017 and preceding years of assessment as well as instruments not stamped after six (6) months from the stamping period.
ii. All voluntary disclosures of income for year of assessment 2017 and preceding years of assessment will be assessed based on the year in which the income is received / receivable. However, where the year to which the income relates cannot be verified, the reporting of the income in the year of assessment 2017 may be allowed. The ITRF / PTRF for preceding years of assessment still has to be submitted by entering the amount zero (“0”) in the income column.
iv. The implementation period of this Special Program also applies to transfer pricing issues, however penalty will be assessed according to their own standard and regulations.
v. IRBM will accept in good faith all voluntary disclosures made during the Special Program period. Further review will not be made on the reported information.
vi. Failure to comply will be subjects to penalties up to 80% to 300%.
You may refer to this link to IBRM website for more information –