LHDN Voluntary Disclosure: What Malaysian SMEs Need to Know in 2026
Have you discovered an e-Invoice error, an unstamped agreement, or a tax reporting issue in your business?
The good news is that LHDN voluntary disclosure initiatives give eligible taxpayers an opportunity to
address certain compliance issues proactively.
For Malaysian SMEs, this is a timely opportunity to review e-Invoice records, stamp duty obligations and tax matters and determine whether corrective action is needed.
So, what should SME owners know, and what should you review now?
What Is LHDN Voluntary Disclosure?
LHDN is highlighting voluntary disclosure opportunities covering e-Invoice, stamp duty and income tax matters.
The message for businesses is straightforward: if you discover an error or incomplete information, consider addressing it rather than leaving the issue unresolved.
Importantly, these initiatives do not all have the same eligibility requirements, benefits or deadlines.
Businesses should determine which programme applies to their circumstances.
How Can LHDN Voluntary Disclosure Help SMEs?
Malaysia's e-Invoice adoption continues to expand. More than 268,000 businesses have implemented e-Invoice, with nearly 1.9 billion e-Invoices submitted for validation, according to figures reported by LHDN in October 2026.
For SME owners, the practical takeaway is simple: review what your business has submitted and make sure your records are complete and accurate.
Understanding which LHDN voluntary disclosure initiative applies to your situation is particularly important because the e-Invoice and stamp duty programmes have different eligibility requirements and deadlines.
Here are three key areas worth examining.
1. Can You Correct e-Invoice Mistakes Without Penalties?
If your business has already implemented e-Invoice, this should be one of the first areas you review.
Under the e-Invoice Special Voluntary Disclosure Programme (SVDP), taxpayers can check, update, and make corrections to e-Invoice transactions.
Official HASiL information states that no penalties will be imposed for reviewing, updating, and correcting e-Invoice transactions under the programme, which runs from 7 July 2026 until 31 December 2027.
Who Is Eligible for the e-Invoice SVDP?
According to HASiL, the programme is open to taxpayers who:
Implemented e-Invoice according to the prescribed timeline but did not issue e-Invoices for certain transactions
Issued e-Invoices containing errors or information that does not comply with prescribed specifications and requirements
Did not issue e-Invoices for a period beginning from their mandatory e-Invoice implementation date
Are subject to an e-Invoice compliance review
If any of these circumstances apply to your business, reviewing your e-Invoice records while the programme remains available may be worthwhile.
2. Could Your Business Have Unstamped Documents?
Stamp duty is another area SMEs should pay attention to.
LHDN has reported receiving nearly one million applications under its stamp duty voluntary disclosure programme. The initiative allows taxpayers to regularise previously unstamped documents, with examples including tenancy agreements, loan documents, and transaction agreements.
The Stamp Duty Special Voluntary Disclosure Programme 2026 was extended for six months, from 1 July to 31 December 2026.
Official HASiL information states that benefits under the programme include a waiver of penalties, except in cases involving fraud, and that qualifying instruments will not be subjected to audits.
Eligibility conditions matter. According to HASiL, eligible instruments are those executed between 1 January 2023 and 31 December 2025, with stamping and stamp duty payment to be made between 1 January 2026 and 31 December 2026.
For SMEs with older agreements where the stamping position is uncertain, this is a timely reason to review those documents and establish whether the programme applies.
3. What About Income Tax Disclosures?
Income tax is another area highlighted in LHDN's voluntary disclosure push.
At the launch of Bulan Hasil 2026, LHDN encouraged taxpayers who realise something needs to be corrected to come forward, seek guidance and take the necessary action.
According to the announcement, the penalty rate referenced for voluntary income tax disclosure was 15%, compared with a potential 45% if detected through an audit and 60% or above following an investigation.
Importantly, these figures were specifically stated in relation to income tax disclosure, not the separate e-Invoice or stamp duty programmes.
For SMEs, this is a useful reminder to check that historical tax submissions are supported by appropriate accounting records and documentation.
If something does not look right, don't assume that the rules or incentives of one voluntary disclosure programme automatically apply to another. The appropriate treatment depends on the tax matter and circumstances involved.
What About Smaller Businesses and e-Invoice?
There is also an important development for smaller enterprises.
LHDN announced that the annual turnover threshold for Phase Four of the e-Invoice rollout had been raised from RM1 million to RM3 million, with businesses below RM3 million not required to implement the system under this phase.
For smaller SMEs affected by the change, this provides an opportunity to understand their position and keep their accounting records and processes properly organised.
What Should SMEs Do Now?
You don't need to turn this into a massive compliance exercise.
Start with five practical checks:
1. Review your e-Invoice records
Look for missing transactions, errors or information that may not meet applicable requirements.
2. Check your business agreements
Review relevant documents, particularly where the stamp duty position is uncertain.
3. Review historical tax records
Check that previous filings are supported by appropriate accounting records and documentation.
4. Organise your supporting documents
Clear and complete records make it easier to assess your current compliance position.
5. Seek professional guidance when you're unsure
The voluntary disclosure initiatives have different eligibility criteria, benefits and deadlines. Don't assume the rules of one programme apply to another.
Frequently Asked Questions About LHDN Voluntary Disclosure
Can SMEs Correct e-Invoice Mistakes Without Penalties
Under the e-Invoice SVDP, HASiL states that no penalties will be imposed for reviewing, updating and correcting e-Invoice transactions. The programme runs from 7 July 2026 until 31 December 2027, subject to its requirements.
When Does the Stamp Duty SVDP End?
The Stamp Duty Special Voluntary Disclosure Programme 2026 has been extended until 31 December 2026.
Are the e-Invoice and Stamp Duty SVDPs the Same Programme?
No. They are separate programmes with different requirements and deadlines.
The e-Invoice SVDP runs until 31 December 2027, while the Stamp Duty SVDP 2026 runs until 31 December 2026.
Who Can Participate in the e-Invoice SVDP?
The programme covers several circumstances, including taxpayers who did not issue e-Invoices for certain transactions, issued e-Invoices containing errors or non-compliant information, did not issue e-Invoices from their mandatory implementation date, or are subject to an e-Invoice compliance review.
The Bottom Line
LHDN voluntary disclosure gives Malaysian SMEs an opportunity to take a closer look at their compliance position and determine whether known issues need attention.
The key is not to panic. Review your records systematically, identify genuine gaps and establish which programme, if any, applies to your circumstances.
Pay particular attention to the deadlines. The Stamp Duty SVDP currently ends on 31 December 2026, while the e-Invoice SVDP runs until 31 December 2027.
For SME owners, the objective is simple: understand where your business stands, identify what needs attention and take appropriate action while the relevant opportunity remains available.
Need Help Reviewing Your SME Compliance?
Not sure whether your e-Invoice records, accounting documents or compliance processes require attention?
CR Consultancy helps Malaysian SMEs review their accounting records, e-Invoice readiness, financial reporting and wider compliance needs so business owners can identify potential gaps and understand their next steps.
Disclaimer: This article is for general information only and does not constitute tax, legal or accounting advice. Programme eligibility, benefits and requirements depend on the applicable rules and individual circumstances. Businesses should refer to the latest official LHDN/HASiL guidance and seek professional advice where appropriate.
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