Malaysia Oversight

LHDN urges taxpayers to declare income correctly to avoid refund delays

By MalayMail in August 12, 2025 – Reading time 2 minute
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KUALA LUMPUR, Aug 12 — Taxpayers must accurately declare their income via e-Filing on the MyTax Portal or through manual forms at the Inland Revenue Board of Malaysia (IRB) office to ensure a smooth refund process for overpaid taxes.

IRB Revenue Collection Department principal assistant director Masnudiah Abdullah said the step was important to ensure refunds for excess tax paid were made within the period stipulated in the Board Client’s Charter, which is 30 working days after e-Filing submission.

“This tax refund is not a gift or bonus from HASiL (IRB), but the right of taxpayers who have complied with tax laws, and it is their responsibility to declare their income accurately,” she said on Bernama Radio’s Tax Clinic programme today, which discussed the topic ‘Ketahu Hak Anda: Bayaran Balik Cukai’.

Masnudiah explained that a tax refund was made when the amount of tax paid or deducted exceeded the actual amount imposed, including cases where monthly tax deductions (PCB) were higher than the actual tax, tax relief claims were approved, or business income was lower than the estimates in CP500 or CP204.

She said the refund process commenced when the taxpayer submitted an Income Tax Return Form (BNCP) manually or via the e-Filing system, which would automatically calculate the tax and notify the taxpayer of their refund eligibility.

“However, refund delays can still occur due to several factors, including incomplete, invalid or inactive bank account information; taxpayers having tax arrears from previous years; and the registered bank account not belonging to the taxpayer, which requires further checks,” she said.

“For example, even though taxpayers are eligible for a tax refund for 2024, any tax arrears from 2023 will be deducted from the refund amount first,” she said.

According to Masnudiah, refunds were primarily made via electronic funds transfer (EFT) to the taxpayer’s bank account, or through DuitNow registered with the identity card or passport number linked to a valid bank account, or by cheque posted to the taxpayer’s mailing address.

She said that in the case of deceased taxpayers, refunds could be claimed by heirs, executors, or estate administrators upon submitting a certified copy of the letters of administration, verified by a Commissioner for Oaths, Magistrate, or Category A government officer.

“This measure is intended not only to comply with regulations but also to ensure that the interests of all heirs are protected, enabling tax refunds to be channelled to the rightful parties,” she said.

Masnudiah also reminded taxpayers to regularly check their refund status via the MyTax Portal, update bank account details through the e-Kemaskini service, and review any tax arrears on the e-Lejar.

For more information, the public can visit the official IRB website at https://www.hasil.gov.my, contact the HASiL Care Line at 03-8311 1000, use Live Chat, or visit the IRB office handling their tax files. — Bernama

 

 



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