KUALA LUMPUR: The Inland Revenue Board (LHDN) will adopt a fairer and equitable approach this year to ensure more timely settlement of excess tax refunds with a focus on older cases and small businesses, says the Finance Ministry. The ministry said LHDN would first adopt the First In, First Out principle in which older refund arrears are prioritised for this year. LHDN’s priority this year is to settle corporate excess tax refunds for the 2023 year of assessment in the first quarter of 2026, followed by refunds for the 2024 year of assessment, which are to be completed by the end of the year. With this additional review facility, the estimated tax payments required are expected to be closer to the actual tax liability payable by companies, which in turn will help reduce cases of excess tax refunds. The ministry also revealed that LHDN settled RM22.45bil in total excess tax refunds cases for 2025, which involved 3.6 million taxpayers, including micro, small and medium enterprises, making it the highest level in the past five years.

Source: The Star January 29, 2026 02:44 UTC