Malaysia: New voluntary disclosure program
Covers all indirect taxes, duties, and levies under RMCD
The Royal Malaysian Customs Department (RMCD) has introduced a new program—the compliance verification audit programme (audit verifikasi pematuhan or AViP)—to encourage taxpayers to voluntarily disclose any non-compliance through self-assessment.
The AViP covers all indirect taxes, duties, and levies under RMCD (e.g., sales tax, service tax, customs duties, excise duties, and tourism tax).
Taxpayers under audit or those with underpaid taxes can request to join AviP and self-calculate and disclose underpaid taxes for up to six years. RMCD will conduct minimal checks on a few taxable periods.
If there is no non-compliance, a verification audit compliance certificate will be issued. If there are areas of non-compliance, a round table discussion will be conducted and a voluntary disclosure agreement form will be issued followed by a voluntary disclosure eligibility letter.
Benefits include:
- 100% penalty remission if paid within six months
- 50% penalty remission if paid within 6-12 months
- Option for installment payments
- No compound penalties
Read a July 2024 report prepared by the KPMG member firm in Malaysia