In the dark when the balance will finally be paid


PETALING JAYA: A business owner had his RM200,000 tax refund pending for nearly five years, says a leading business group.

According to SME Association of Malaysia president Dr Chin Chee Seong, the case involved one of its council members.

“The business was recently informed that only 5% of the amount would be released initially, with no clear timeline given for when the balance would be paid.

“While the member appreciates that the claim has finally been acknowledged, the lack of certainty makes it very difficult to plan operations properly,” he said.

Chin added that the absence of a firm schedule has left businesses unsure of when outstanding refunds will be fully settled.

He said such experiences are not isolated, with SMEs frequently seeking clarity on the status of their refunds but receiving limited information on processing timelines.

“Businesses are not disputing assessments or seeking concessions but are waiting for refunds arising from overpaid taxes,” he said.

Small and Medium Enterprises Association Malaysia president Datuk William Ng said his association has received feedback from members facing a wide range of delays, regardless of refund size.

In some cases, relatively small amounts of between RM5,000 and RM10,000 have been outstanding for more than a year, while larger refunds exceeding RM200,000 have remained unpaid for two to three years.

“Regardless of the amount, the impact is significant because these funds have already been accounted for by the businesses,” Ng said, adding that prolonged delays make it difficult for SMEs to plan with certainty.

Both Chin and Ng noted that their members have also expressed concern over refunds being paid in instalments rather than in full.

While partial payments may indicate progress, they said the lack of a clear schedule for the remaining sum has created uncertainty for businesses trying to manage their financial commitments.

“SMEs would prefer a clear timeline for full payment instead of staggered disbursements without certainty,” said Ng.

Chin noted that instalment payments provide “limited relief when businesses are unable to predict when the balance will be released”.

The recent announcement by Prime Minister Datuk Seri Anwar Ibrahim to increase the tax refund allocation, along with updates from LHDN on efforts to speed up processing, has been welcomed by SME groups.

However, both associations said business confidence would depend on consistent execution and transparent communication.

Clearing long-outstanding cases and providing clear timelines, they said, would send a strong signal that the authorities recognise the challenges SMEs face and are committed to resolving refund issues in a timely and predictable manner.

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Trade , commerce , tax , SMEs , tax refund , delay , cash flow , payment , LHDN , MOF.

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