RM17 Billion Tax Refunds Cleared, RM2 Billion Remaining to Be Processed
Cyberjaya, 19 December 2025 — The Inland Revenue Board of Malaysia (LHDN) has successfully processed RM17 billion in tax refunds covering 3.53 million cases as of 18 December 2025. An additional RM2 billion from a recently increased allocation of RM4 billion is expected to be processed and disbursed before the end of this month.
In a statement issued today, LHDN highlighted that the RM17 billion in refunds included part of the extra RM4 billion allocation announced by Prime Minister Anwar Ibrahim to expedite outstanding tax refund payments to taxpayers.
The first RM1 billion from this additional fund was dedicated to clearing refund backlogs exceeding three years, regardless of the amount involved. Another RM1 billion focused on taxpayers with refunds aged two years or more, prioritising small and medium enterprises (SMEs). Between 9 December and 18 December, a further RM2 billion was processed and credited to 7,819 cases.
Prime Minister Anwar Ibrahim made the announcement last week to increase the tax refund allocation from the original RM2 billion to RM4 billion as a measure to accelerate disbursements and address the backlog swiftly.
LHDN cautioned that certain tax refunds could not be processed due to incorrect or missing bank account information submitted by taxpayers. They urged all taxpayers to verify and update their bank details on record with the Board to avoid delays.
Additionally, refunds cannot be disbursed in cases where the refunds are subject to legal disputes, where taxpayers have outstanding assessments from other years, or where companies eligible for refunds have been liquidated or dissolved.
LHDN reaffirmed its commitment to continue processing refunds systematically and progressively. The Board will prioritise disbursing the largest amounts pending and the refunds involving SMEs to support cash flow improvements for affected businesses.
Taxpayers are encouraged to maintain up-to-date personal and banking information with the Inland Revenue Board to facilitate timely processing of refunds.
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This article is based on reporting by Bernama and information released by the Inland Revenue Board of Malaysia.