KUALA LUMPUR: A total of RM3.9bil in tax refunds has been paid out to taxpayers up to 31 Jan 2026, covering 34,899 cases for the 2023 year of assessment, says the Finance Ministry.
The ministry said that based on the commitment announced by the Prime Minister on 5 Jan 2026, the Government aims to settle all refunds for 2023 tax filings within the first quarter of 2026.
“The Government will also ensure that refunds for the 2024 year of assessment can be made before the end of 2026,” it said in a written reply on Friday (Feb 6).
The ministry responded to a question from Jimmy Puah Wee Tse (PH–Tebrau), who requested details on the number of entities and the amounts expected to receive tax refunds, as well as the amount still outstanding.
In a separate written reply to Lim Guan Eng (PH–Bagan), who asked for the total amount of overpaid tax and the number of companies involved since 2020, and whether all of it can be refunded by 2026, together with the 2% compensation for late payment, the ministry stressed that compensation was subject to conditions.
It stated that taxpayers were not eligible for compensation if tax return forms were submitted after the due date, contained incorrect or incomplete information, or the taxpayer had filed an appeal against an assessment or claimed deductions exceeding the tax payable.
“The Government complies with and will pay compensation of 2% per year for any late refunds as provided under the Income Tax Act.
“As of now, compensation totalling RM23.6mil has been paid for part of the refunds in 2025. As a trustworthy Government, our commitment to pay compensation will be honoured, and this will not be compromised,” it said.
