Tax refund backlog cleared


PUTRAJAYA: The Inland Revenue Board (LHDN) has processed overdue tax refunds totalling RM18bil involving 3.54 million cases as of Dec 22, following the implementation of additional allocations announced by Prime Minister Datuk Seri Anwar Ibrahim recently.

In a statement yesterday, LHDN announced that for the period of Jan 1 to Dec 8, 2025, refunds involving 3.52 million cases amounting to RM15bil were processed.

LHDN said for the period of Dec 9 to 15, an additional allocation of RM1bil was processed and credited to 6,480 cases.

“This was followed by an additional allocation of RM1bil for the period Dec 16 to 18 involving 1,339 cases.

“From Dec 19 to 22, LHDN processed refunds totalling RM1bil involving 13,111 cases,” read the statement.

In a Bernama report based on the statement, LHDN said from the additional allocation of RM4bil announced, RM3bil has been successfully processed and credited from Dec 9 to 22, involving 20,930 cases.

“The remaining additional allocation of RM1bil will be processed and fully settled before the end of December,” it added.

According to the statement, the first additional fund of RM1bil has been used to settle refund arrears that are more than three years old, regardless of the amount involved.

“Meanwhile, the subsequent fund of RM2bil has focused on settling refunds for cases that are two to three years old, with priority given to small and medium enterprises (SME).”

On Dec 7, the Prime Minister announced an allocation for tax refunds from RM2bil to RM4bil to expedite outstanding payments to taxpayers.

Meanwhile, LHDN advised taxpayers to ensure that their bank account information is up to date for a smooth refund process.

It stressed its commitment to settling refunds in an orderly and phased manner, with priority given to outstanding amounts and cases involving SMEs.

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IRB , refund , tax , outstanding , SMEs

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