(TAX UPDATE) Tax Refund in Malaysia … Why Some Get Paid Fast and Some Wait Months.

(TAX UPDATE) Tax Refund in Malaysia … Why Some Get Paid Fast and Some Wait Months.

Introduction

Every new year, Malaysians suddenly become very interested in their bank accounts.

Not because of salary.

Not because of bonus.

But because of one question that appears everywhere in WhatsApp groups, clients’ email and client’s meeting :

“Eh… income tax refund already masuk or not?”

Tax refund in Malaysia has always been an interesting story.

Years ago, taxpayers filled in electronically

Then they waited for refund.

Sometimes one year.
Sometimes over three years.

Nobody really knew when the refund would come.

Even worse LHDN sometimes performs additional verification with audit queries and additional supporting documents before releasing refunds to companies.

In 2025, many Malaysia Sdn Bhd experienced “improved” tax refunds. The government revealed a large backlog of refunds, with billions owed to taxpayers. To address this, additional funds were allocated to clear outstanding payments.

With eMyTax, MITRS and e-Invoice , the system is much faster and more structured.

6 March 2026, LHDN announced that income tax refunds for Year of Assessment 2025 will start to be credited from the second week of March 2026.

For many taxpayers who filed early, this is the time where people start checking their bank accounts every morning.

But after many years working with taxpayers, I notice something interesting.

When refunds are delayed, it is often a simple reasons from taxpayers :

• Wrong bank account number
• Bank account already closed
• Bank account not under the taxpayer’s own name
• Bank details never updated in MyTax

One small administrative detail can delay a refund for weeks.

So if you have already filed your return this year, it may be worth checking three simple things:

✔ Your bank account details in MyTax are correct
✔ The account is still active
✔ The account is under your own name

Sometimes the fastest tax refund is simply the result of accurate information and early filing.

Now I’m curious.

Last year, how long did your Sdn Bhd tax refund take to arrive?

1️⃣ Less than 1 year
2️⃣ More than 2 years but less than 3 years
3️⃣ More than 3 years but less than 4 years
4️⃣ Still waiting until today

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