423
BESHINCHI KENGASH. MILLIY IQTISODIYOTDA BARQAROR
RIVOJLANISH: MOLIYAVIY TIZIM, INNOVATSIYALAR, TURIZM VA
TADBIRKORLIKNI RIVOJLANTIRISHNING USTUVOR YOʻNALISHLARI
SMES’ INTENTIONS TO PARTICIPATE IN THE SPECIAL
VOLUNTARY DISCLOSURE PROGRAMME 2.0: INSIGHTS FROM
MALAYSIA
Saliza Abdul Aziz,
Associa e P o esso , PhD, Tunku Pu e i In an Sa inaz School o Accoun ancy,
Uni e si i U a a Malaysia, Malaysia, saliz[email p o ec ed]y
Khamdamo Shakhzod Ilkhom o‘g‘li,
PhD, Depa men o Business and Adminis a ion, O ien al Uni e si y,
Tashken , Uzbekis an
Bobu bek Khakimo ,
Lec u e , Depa men o Business and Adminis a ion, O ien al Uni e si y,
Tashken , Uzbekis an
Abs ac . Compliance wi h ax egula ions among small and medium-sized
en e p ises (SMEs) in Malaysia has long been a challenge, as e lec ed in he low
submission a es o income ax e u n o ms (ITRF). Al hough he Special Volun a y
Disclosu e P og amme (SVDP) 1.0 was p e iously in oduced, SMEs con inue o
s uggle wi h complex ax issues, limi ed accoun ing esou ces, and a lack o awa eness
ega ding egula o y equi emen s. This s udy seeks o add ess hese challenges by
examining he ac o s in luencing SMEs’ in en ion o pa icipa e in SVDP 2.0, guided
by he Theo y o Planned Beha io (TPB). The s udy ocuses on de e mining he
ela ionships among he ac o s o a i ude, subjec i e no ms, ax knowledge,
en o cemen o penal ies, and willingness o pa icipa e among SME owne s in
Malaysia’s No he n Region wi h ega d o SVDP. A quan i a i e esea ch app oach
was employed, using an online ques ionnai e dis ibu ed ia Google Fo ms o SME
owne s in ou s a es in Malaysia, which a e loca ed in he No he n egion, i.e., Pe lis,
Kedah, Pulau Pinang, and Pe ak. A o al o 276 alid esponses we e collec ed and
analyzed using SPSS so wa e ( e sion 29). The indings e eal a s ong inclina ion
among SME owne s in he no he n egion o pa icipa e in he SVDP o ensu e ax
compliance. I is suppo ed ha a i ude, subjec i e no m, ax knowledge, and
en o cemen o penal ies a e signi ican ly ela ed o he in en ion o pa icipa e in
SVDP among SMEs in he no he n egion. This highligh s he need o ailo ed
policies and suppo mechanisms o enhance engagemen and compliance. This s udy
con ibu es o he heo e ical unde s anding o ax compliance beha io by add essing
424
exis ing esea ch gaps and o e ing p ac ical ecommenda ions. Implemen ing hese
s a egies can os e a mo e suppo i e en i onmen o SMEs o engage in olun a y
disclosu e ini ia i es, he eby s eng hening o e all ax compliance and con ibu ing o
sus ainable economic g ow h.
Keywo ds: In en ion, A i ude, Subjec i e No ms, Tax Knowledge, En o cemen
o Penal y.
1.0. INTRODUCTION
Taxa ion is a manda o y inancial le y imposed by he go e nmen on indi iduals
and en i ies (Tax Founda ion, 2024). The e enue gene a ed om axes plays a i al
ole in unding na ional expendi u es, including he p o ision o public in as uc u e,
weal h edis ibu ion, economic egula ion, and in la ion con ol. Tax policies,
howe e , a y ac oss coun ies and equen ly gi e ise o deba e and di e ing
pe spec i es.
In Malaysia, he Inland Re enue Boa d o Malaysia (IRBM) has been consis en ly
enhancing i s se ice amewo k by ansi ioning om a o mal assessmen sys em o
a sel -assessmen sys em (STS) since he assessmen yea s 2001 o companies and
2004 o non-company axpaye s, including indi iduals. This shi aims o bols e ax
compliance a es. As pa o his e o , IRBM has in oduced e-Filing and By Hasil
sys ems o s eamline axpaye s' ac i i ies in income decla a ion and paymen s
(Be nama, 2017). Taxpaye s can decla e income and compu e ax liabili ies wi hou
he need o submi eceip s o suppo ing documen s up on ia e-Filing. These
documen s a e only equi ed o be sen o IRBM ia email i eques ed du ing he ax
audi p ocess. Ne e heless, despi e hese measu es, some pa ies pe sis in a emp ing
o e ade o ci cum en hei ax obliga ions (Saad, 2012). Despi e he ease in he ax
p ocess, ax non-compliance is s ill a majo p oblem o ax au ho i ies in many
coun ies, including Malaysia.
Tax compliance gene ally e e s o he deg ee o which axpaye s ul ill hei ax
obliga ions, which include iling e u ns on ime, accu a ely epo ing income, paying
he axes owed, and adhe ing o ele an ax laws and egula ions. In Malaysia, as in
many coun ies, achie ing high le els o ax compliance is c ucial o gene a ing
e enue, ensu ing ai ness, and p omo ing good go e nance. The Inland Re enue
Boa d o Malaysia (IRBM) has iden i ied signi ican amoun s o unpaid axes. Fo
ins ance, be ween Janua y 1, 2024, and Augus 31, 2025, he IRBM disco e ed
addi ional ax liabili ies o aling app oxima ely RM15.2 billion om companies and
abou RM1.75 billion om indi iduals, amoun ing o a combined o al o a ound
RM16.95 billion, including penal ies (Be nama, 2025). To add ess he issue o non-
compliance, he IRBM is encou aging olun a y disclosu es, which can help educe
penal ies compa ed o audi s and in es iga ions.
Acco dingly, he Malaysian Minis y o Finance (MoF) in oduced he Special
Volun a y Disclosu e P og amme (SVDP) o enhance ax compliance among
Malaysians, assigning he IRBM o o e see i s implemen a ion. O iginally in oduced
as SVDP 1.0 subsequen o he un eiling o he 2019 Budge on No embe 2, 2018, i
ope a ed om No embe 3, 2018, un il Sep embe 30, 2019 (Sina Ha ian, 2024).
Du ing his pe iod, he p og am acili a ed he collec ion o RM7.88 billion in o al
425
axes, addi ional axes, and penal ies om 286,428 axpaye s (Be i a Ha ian, 2020).
Addi ionally, SVDP 1.0 a ac ed 11,176 new axpaye s wi h a huge amoun o
assessmen om a ious ac i i ies, i.e., income ax e u n o m, audi , in es iga ion,
special ope a ion, special ac ion, income ax, eal p ope y gain ax, as well as s amp
du y.
Conside ing he success o SVDP 1.0 in 2019, SVDP 2.0 was launched om June
6, 2023 o May 31, 2024. The p ima y aim o SVDP 2.0 was o encou age mo e
axpaye s o come o wa d and ec i y any ax disc epancies wi hou acing penal ies.
The ul ima e goal was o enhance ax compliance and bols e e enue collec ion. By
Janua y 31, 2024, IRBM had ecei ed a o al o 64,748 olun a y decla a ion cases
om bo h new and exis ing axpaye s in all ca ego ies (KPMG, 2023).
Ini ia i es such as he SVDP ha e shown p omise o inc easing compliance a es.
Howe e , his pape ocuses on SMEs as i is claimed ha egula o y and
adminis a i e bu dens on SMEs (BusinessToday, 2024). This is mainly due o SMEs
o en lacking he esou ces ( inancial, human, echnical) o mee ax compliance
obliga ions. I is claimed ha due o limi a ions o hi ing in-house ax expe s, and
ex e nal agen s cos money (BusinessToday, 2024). In addi ion o he high cos o
compliance in e ms o ime and e o o smalle businesses, simpli ica ion is o en
ecommended o his g oup (Aziz, Bidin, & Ma imu hu, 2017).
Hence, he ques ions aised in his pape : wha a e he ela ionships be ween
a i ude, subjec i e no ms, ax knowledge, en o cemen o penal y, and in en ion o
pa icipa e in SVDP among SME owne s in Malaysia, ocusing on he no he n egion?
2.0. LITERATURE REVIEW
This li e a u e e iew examines key ac o s in luencing SME owne s’ in en ion
o pa icipa e in he SVDP wi hin he No he n Region. Fac o s such as a i ude,
subjec i e no ms, ax knowledge, and en o cemen o penal ies a e analyzed o be e
unde s and hei collec i e impac on pa icipa ion in en ions.
2.1. Small and Medium-Sized En e p ises (SMEs)
SME s a us applies o en i ies es ablished in Malaysia unde he Companies Ac
2016, egis e ed unde he Business Regis a ion Ac (1956) o he Limi ed Liabili y
Pa ne ship Ac (2012), egis e ed wi h au ho i ies in Sabah and Sa awak, o egis e ed
unde speci ic s a u o y bodies o p o essional se ice p o ide s below RM25 million
o a wo k o ce o ewe han 150 ull- ime employees. IRBM ca ego izes SMEs as
ollows ( e e Table 1):
Table 1 SMEs Ca ego ies
Ca ego ies
Mic o
Small
Medium
Fac o y
Re enue
unde
RM300,000 o a
s a coun o 5
o ewe .
Re enue
anging om
RM300,000 o RM15
million, o a
wo k o ce
comp ising 5 o 75
ull- ime employees.
Re enue
anging om RM15
million o RM50
million o a
wo k o ce
consis ing o 75 o
200 ull- ime
employees.
426
Se ices
and o he sec o
Re enue
unde
RM300,000 o a
s a coun o 5
o ewe .
Gene a e
e enue anging om
RM300,000 o RM3
million o employ a
wo k o ce o 5 o 30
indi iduals.
Re enue
anging om RM3
million o RM20
million o a
wo k o ce o 30 o
75 ull- ime
employees.
Sou ce: IRBM (2024)
2.2. Special Volun a y Disclosu e P og amme in Malaysia (SVDP)
Special Volun a y Disclosu e P og amme (SVDP) is a ax amnes y p og amme
ha encou ages axpaye s o decla e un epo ed income olun a ily and pay he
ele an axes. The p og amme has been implemen ed in a ious coun ies wo ldwide,
including Malaysia, Indonesia, and Singapo e, o inc ease s a e budge e enues and
s eamline de elopmen p og ammes.
The SVDP is he hi d p og amme implemen ed in Malaysia a e he ax amnes y
p og amme ha was implemen ed in 2015 and 2016. I is pa o a se ies o ini ia i es
aimed a imp o ing ax compliance. All h ee p og ammes sha e he same objec i e o
incen i izing axpaye s o decla e hei income (LHDNM, 2018). Simila o 2015 and
2016, his SVDP is an e o o inc ease go e nmen e enue by encou aging g ea e
pa icipa ion and anspa ency in ax epo ing.
Du ing he 2023 e ised Budge p esen ed on 24 Feb ua y 2023, he Special
Volun a y Disclosu e P og amme (SVDP) o SVDP 2.0 was ein oduced (Soh, 2023).
SVDP 2.0 aims o bols e ax compliance and expand he na ion's ax base. Running
om June 6, 2023, o May 31, 2024, his ini ia i e o e s axpaye s a golden chance o
ec i y hei ax a ai s and begin a esh. Taxpaye s who olun a ily disclose
un epo ed axes will be eligible o a comple e penal y wai e .
3.0. METHODOLOGY
This s udy in es iga es he ac o s in luencing SME owne s’ willingness o
pa icipa e in he SVDP wi hin Malaysia’s No he n Region. A quan i a i e app oach
was adop ed using a s uc u ed ques ionnai e dis ibu ed o SME en ep eneu s in
Pe lis, Kedah, Penang, and Pe ak. The collec ed da a we e used o assess he s udy
a iables and es he p oposed hypo heses.
The s udy ocuses on SME owne s in Malaysia’s No he n Region, encompassing
Pe lis, Kedah, Pulau Pinang, and Pe ak. Gi en he la ge popula ion o 484,749
egis e ed businesses (Companies Commission o Malaysia, CBID), a andom
p obabili y sampling me hod was employed. A o al o 276 SME owne s we e selec ed,
ep esen ing an adequa e sample size consis en wi h he ecommenda ions o Kadam
and Bhale ao (2010) and Seka an (2016). The su ey was dis ibu ed ia email o
membe s o he Malay, Chinese, and Indian Chambe s o Comme ce, as well as
h ough online channels a ge ing business ne wo ks wi hin he egion.
4.0. FINDINGS
4.1. Demog aphy o Responden s
In o al o he 276 esponden s, 170 we e iden i ied as male, ep esen ing 61.6%.
Con e sely, 106 pa icipan s we e iden i ied as emale, cons i u ing 38.4%. In e ms o
427
acial dis ibu ion, he majo i y, comp ising 42.8% (n = 118) o he sample, iden i ied
as Malay. Indian indi iduals accoun ed o 40.2% (n = 111), making hem he second-
la ges g oup. Chinese esponden s cons i u ed 15.2% (n = 42) o he popula ion.
Las ly, hose ca ego ized as "O he s" ep esen ed a smalle p opo ion, comp ising only
1.8% (n = 5) o he o al sample.
The b eakdown o esponden s' p o iles by s a e indica es ha 4.0% o
esponden s (n = 11) a e om Pe lis, 31.2% (n = 86) om Kedah, 21.7% (n = 60) om
Pulau Pinang, and 43.1% (n = 119) om Pe ak. The su ey da a e eal ha he majo i y
o esponden s, comp ising 37.0% (n = 102), ell wi hin he age ange o 30 o 40 yea s
old. Following closely behind, 33.3% (n = 92) o pa icipan s we e aged be ween 41
and 50 yea s. Addi ionally, 26.1% (n = 72) o esponden s we e younge han 30 yea s
old. Las ly, a smalle p opo ion, accoun ing o 3.6% (n = 10) o pa icipan s, we e
olde han 50 yea s.
The esponden s' p o ile, ca ego ized by business ype, indica es ha 195
indi iduals (70.7%) a e employed in manu ac u ing, while he emaining 81 (29.3%)
wo k ac oss se ices and o he sec o s. The ca ego y o esponden s is based on he
size o hei businesses. The majo i y, cons i u ing 61.2% (n = 169), we e classi ied as
mic o-en e p ises, de ined by a u no e o less han RM300,000 and ewe han 5
employees. Small manu ac u ing en i ies accoun ed o 18.1% (n = 50) o he
esponden s, while 17.0% (n = 47) ep esen ed small se ices and o he sec o s,
cha ac e ized by a u no e anging om RM300,000 o RM3 million and an employee
coun o 5 o 30 people. Addi ionally, 1.1% (n = 3) ell in o he ca ego y o medium
manu ac u ing, wi h u no e s be ween RM15 million and RM50 million, employing
75 o 200 people. Finally, 2.6% (n = 7) we e classi ied as medium se ices and o he
sec o s, wi h u no e s anging om RM3 million o RM20 million and employing 30
o 75 indi iduals.
4.2. Mul iple Reg ession Analysis
The esul s o his s udy a e o answe he objec i e, which is o de e mine he
ela ionships be ween a i ude, subjec i e no ms, ax knowledge, en o cemen o
penal y, and in en ion o pa icipa e among small and medium-sized en e p ises
(SMEs) owne s in he no he n egion in he SVDP.
Mul iple linea eg ession analysis was ca ied ou wi h ou (4) ac o s as
impo an p edic i e a iables, i.e., a i ude, subjec i e no m, ax knowledge, and
en o cemen o penal y. The esul s showed ha he p edic ion model o in en ion o
pa icipa e was signi ican [F (4, 271) = 145.924, p < 0.05], and he R-squa e o his
model was 0.683, which means his model explained 68.3% o he a iance o in en ion
o pa icipa e ( e e Table 2).
The ou comes show a signi ican ela ionship be ween a i ude and in en ion o
pa icipa e, ß = 0.201, (271) = 5.054, p < 0.01. The e is also a signi ican ela ionship
be ween subjec i e no m and in en ion o pa icipa e, ß = 0.408, (271) = 8.758, p <
0.01. The e is a signi ican ela ionship be ween ax knowledge and in en ion o
pa icipa e, ß = 0.390, (271) = 10.892, p < 0.01. The e is a signi ican ela ionship oo
be ween en o cemen o penal y and in en ion o pa icipa e, ß = 0.137, (271) = 3.210,
p < 0.01. Based on he esul s, he ou (4) hypo heses p oposed o his pape a e
accep ed and suppo ed. Among he be a alues, subjec i e no m is he highes (0.408),
428
which indica es i is he mos impo an ac o ha in luences he in en ion o
pa icipa e. This is ollowed by ax knowledge (0.390), a i ude (0.201), and las ly,
en o cemen o penal y (0.137).
Table 2 Mul iple Reg ession Analysis (n=276)
Model
Uns anda dize
d Coe icien s
S and
a dized
Coe icien
s
Sig. P
B
S d.
E o
Be a
1
(Cons an )
1.288
.138
9.29
7
.000
A i ude
.160
.032
.201
5.05
4
.000
Subjec i e no m
.227
.026
.408
8.75
8
.000
Tax knowledge
.264
.024
.390
10.8
92
.000
En o cemen o
penal ies
.076
.024
.137
3.21
0
.001
a. Dependen Va iable: In en ion o pa icipa e
R-squa e = 0.683, F (4, 271) = 145.924, Sig. F = 0.000
The esul s o he mul iple eg ession analysis p o ide aluable insigh s in o he
ela ionships be ween a ious ac o s and he in en ion o pa icipa e among SME
owne s in he no he n egion ega ding he SVDP (p esumably, e e ing o a speci ic
ax o economic de elopmen p og amme). Fi s ly, he signi ican ela ionships
be ween a i ude, subjec i e no ms, ax knowledge, en o cemen o penal y, and
in en ion o pa icipa e unde sco e he complexi y o ac o s in luencing SME owne s'
decision-making ega ding pa icipa ion in he p og am.
The inding ha subjec i e no m has he highes be a alue (0.408), indica ing i s
signi ican in luence on in en ion o pa icipa e, sugges s ha social in luences and
pe cep ions o wha o he s expec play a pi o al ole in SME owne s' decision-making.
The subs an ial impac o ax knowledge (be a alue o 0.390) highligh s he
impo ance o SME owne s' unde s anding o axa ion policies and p ocedu es in
shaping hei in en ion o pa icipa e. Fu he mo e, he posi i e ela ionship be ween
a i ude and in en ion o pa icipa e (be a alue o 0.201) indica es ha SME owne s'
a o able pe cep ions o belie s abou he p og am con ibu e o hei willingness o
engage wi h i . Las ly, he signi ican ela ionship be ween en o cemen o penal y and
in en ion o pa icipa e (be a alue o 0.137) sugges s ha while en o cemen measu es
may exe some in luence on SME owne s' decisions, hei impac is ela i ely weake
compa ed o o he ac o s such as subjec i e no ms and ax knowledge.
429
In conclusion, he indings unde sco e he mul i ace ed na u e o ac o s
in luencing SME owne s' in en ion o pa icipa e in he p og amme, wi h subjec i e
no ms, ax knowledge, and a i udes playing p ominen oles. Add essing hese ac o s
h ough a ge ed in e en ions and educa ional ini ia i es can po en ially enhance SME
pa icipa ion and con ibu e o he success o he p og amme.
5.0. CONCLUSION
This s udy sheds ligh on he key de e minan s in luencing SMEs’ in en ions o
pa icipa e in he Special Volun a y Disclosu e P og amme 2.0 (SVDP 2.0) in
Malaysia. G ounded in he Theo y o Planned Beha io , he indings e eal ha
a i ude, subjec i e no ms, ax knowledge, and en o cemen o penal ies signi ican ly
shape SMEs’ willingness o engage in olun a y disclosu e ini ia i es. These esul s
unde sco e he impo ance o os e ing posi i e pe cep ions owa d ax compliance,
enhancing awa eness, and s eng hening en o cemen mechanisms o encou age
pa icipa ion.
F om a heo e ical pe spec i e, his esea ch ex ends he unde s anding o ax
compliance beha io wi hin he SME con ex , p o iding empi ical e idence on he
beha io al d i e s o olun a y disclosu e. P ac ically, he insigh s o e policymake s
and ax au ho i ies a basis o designing mo e e ec i e ou each, educa ion, and
suppo p og ams ha align wi h SMEs’ beha io al mo i a ions and ope a ional
eali ies.
Ul ima ely, by cul i a ing a anspa en and acili a i e ax en i onmen , Malaysia
can enhance SME compliance, b oaden i s ax base, and ein o ce us be ween
businesses and he ax adminis a ion, which could con ibu e o a mo e equi able and
sus ainable iscal ecosys em.
Re e ences
1. Aziz, S. A., Bidin, Z., & Ma imu hu, M. (2017). The e ec o a i ude and
unde s anding owa ds goods and se ice ax sa is ac ion among business communi y
in Malaysia. Ad anced Science Le e s, 23(4), 3120-3123.
h ps://www. esea chga e.ne /p o ile/Saliza-
Aziz/publica ion/317734128_The_E ec _o _A i ude_and_Unde s anding_Towa ds_
Goods_and_Se ice_Tax_Sa is ac ion_Among_Business_Communi y_in_Malaysia/l
inks/5a1e5485458515a4c3d1e2b6/The-E ec -o -A i ude-and-Unde s anding-
Towa ds-Goods-and-Se ice-Tax-Sa is ac ion-Among-Business-Communi y-in-
Malaysia.pd
2. Be nama. (2017, No embe 24). LHDNM ambah baik sis em penyampaian
pe khidma an. As o Awani. h ps://www.as oawani.com/be i a-malaysia/lhdn-
ambah-baik-sis em-penyampaian-pe khidma an-161135
3. BusinessToday (2024). SMEs Wa ned o Tax Compliance Issues Amid Digi al
Wa es. Business Today P ess. Dec (2024).
h ps://www.business oday.com.my/2024/12/08/smes-wa ned-o - ax-compliance-
issues-amid-digi al-wa es/?u m_sou ce=cha gp .com
4. compliance”, Ad ances in Accoun ing, Else ie L d, Vol. 34, pp. 17–26.
430
5. Enache, C. (2024). Co po a e Tax Ra es A ound he Wo ld, 2024. Tax
Founda ion, Dec (2024). h ps:// ax ounda ion.o g/da a/all/global/co po a e- ax- a es-
by-coun y-2024/
6. Kadam, P., & Bhale ao, S. (2010). Sample size calcula ion. In e na ional
Jou nal o Ayu eda Resea ch, 1(1), 5-11.
7. KPMG. (2023). SVDP 2.0-A e You Ready o Come Fo wa d? KPMG.
h ps://kpmg.com/my/en/home/e en s/2023/05/s dp-2-0-a e-you- eady- o-come-
o wa d0.h ml
8. Malaymail (2025). IRB de ec s RM17b in unpaid axes, u ges olun a y
disclosu es o a oid highe penal ies. Malaymail p ess. Sep . (2025).
h ps://www.malaymail.com/news/malaysia/2025/09/13/i b-de ec s- m17b-in-unpaid-
axes-u ges- olun a y-disclosu es- o-a oid-highe -
penal ies/190954?u m_sou ce=cha gp .com
9. Saad, N. (2012) Pe cep ion o Tax Fai ness and Tax Compliance Beha io a
Compa a i e S udy. Ju nal Pengu usan, 36, 89-100.
10. Sina Ha ian. (2024). LHDNM, JKDM lepasi sasa an ku ipan cukai-PM 9
Janua i 2024. As o Awani. h ps://www.as oawani.com/be i a-malaysia/lhdn-jkdm-
lepasi-sasa an-ku ipan-cukai-pm-453246
11. Soh, L. S. (2023, May 02). SVDP 2.0 – Ano he chance o ge i igh . The
S a . h ps://www. hes a .com.my/business/business-news/2023/05/02/s dp-20---
ano he -chance- o-ge -i - igh Su inen, J. G., & Kupe an, K. (1999). A socio‐economic
heo y o egula o y compliance. In e na ional Jou nal o Social Economics, 26(1/2/3),
174–193. h ps://doi.o g/10.1108/03068299910229569
