IRAS Voluntary Disclosure Programme (VDP) — What Singapore Taxpayers Should Know
The Inland Revenue Authority of Singapore (IRAS) encourages taxpayers who discover mistakes in their past tax filings to come forward and voluntarily disclose these errors under its Voluntary Disclosure Programme (VDP). This initiative helps individuals and businesses correct inaccuracies proactively, reducing penalties and reinforcing good compliance practices.
What Is the IRAS Voluntary Disclosure Programme?
The IRAS VDP is a compliance framework designed to motivate taxpayers to report past tax return errors themselves before these are identified by an audit or investigation. To qualify, disclosures must be timely, accurate and self-initiated, and submitted before IRAS issues a query or starts an audit.
By making use of the VDP, taxpayers demonstrate transparency in managing their tax affairs and can benefit from more lenient penalty treatment compared to situations where errors are uncovered during enforcement actions.
Key Benefits of Making a Voluntary Disclosure
Proper voluntary disclosure under IRAS’s programme delivers several advantages:
- Lower Penalties — Errors disclosed within the statutory grace period often attract reduced or zero penalties.
- Reduced Risk of Enforcement Action — Proactive reporting limits the chance of legal consequences associated with non-disclosure.
- Better Compliance Standing — Engaging with IRAS in good faith helps foster credibility with tax authorities and supports smoother future interactions.
- Clarity on Tax Obligations — The process encourages a review of past filings, improving overall accuracy and governance.
Who Can Use the VDP?
The programme is open to:
- Individuals and businesses — such as sole proprietors, partnerships and incorporated entities.
- Various tax types — including Income Tax, GST, Withholding Tax and Stamp Duty.
- Good faith disclosures — only genuine mistakes that are voluntarily reported are eligible.
Typical Errors Covered
The IRAS VDP addresses a range of filing discrepancies, such as:
- Omissions or misreporting of income
- Incorrect deductions or reliefs claimed
- GST miscalculations
- Under-reported withholding tax
Identifying these issues early gives you the best chance to minimise penalties.
How to Submit a Voluntary Disclosure
- Review Your Records — Conduct an internal audit of past returns to uncover errors.
- Compile Evidence — Gather supporting documents like financial statements, invoices and contracts.
- Submit Online Through myTax Portal — Log in with SingPass or CorpPass and complete the appropriate e-Service form.
- Settle Additional Tax and Penalty — IRAS will issue a revised assessment reflecting any tax due.
Why Professional Support Matters
Navigating voluntary disclosures can be complex, especially for businesses with multifaceted tax obligations. That’s where WLP steps in.
How WLP Can Help
WLP offers specialist support to guide you through the VDP process with confidence:
- Comprehensive tax compliance reviews to uncover potential reporting issues
- Expert analysis and VDP strategy planning
- Preparation and submission of voluntary disclosure paperwork
- Ongoing advice to strengthen future tax compliance
Partnering with experienced tax advisors like WLP ensures disclosures are accurate, complete and help you maximise the benefits of the IRAS VDP.
By understanding your obligations and proactively addressing past reporting errors, you safeguard your finances and build a resilient compliance culture with trusted support from WLP.