What penalty rates apply under the SVDP?

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Low Penalty Rates Apply Under the Special Voluntary Disclosure Programme

The Special Voluntary Disclosure Programme (SVDP) offers reduced penalty rates of 10 per cent and 15 per cent on additional tax liabilities for specific categories of taxpayers. These favourable rates are intended to encourage voluntary compliance and address past omissions or inaccuracies in tax submissions.
Categories Eligible for Reduced Penalties

Three distinct groups of taxpayers are eligible for the reduced penalty rates under the SVDP. The first group comprises individuals or entities that failed to submit their Income Tax Return Form, Petroleum Return Form, or Real Property Gains Tax Return Form in an orderly fashion. The second category includes those who did submit their forms but subsequently under-declared their income or claimed deductions that were not legitimate.
Duty Payer Eligibility

A third category of eligible taxpayers includes duty payers who did not execute their instruments within the stipulated timeframe. These specific circumstances are addressed by the programme, offering a structured pathway for rectification with a lower financial penalty compared to standard assessments.
Programme Scope and International Context

The SVDP, which commenced on November 3, aims to provide an opportunity for taxpayers to make voluntary declarations. Malaysia is among approximately 20 countries implementing similar programmes, a global initiative supported by the Organisation for Economic Co-operation and Development's exchange of information framework. This international context highlights a global trend towards increased transparency and voluntary tax compliance.

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What penalty rates apply under the SVDP?

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