Malaysia settles over RM17 billion in tax overpayment refunds for millions of taxpayers
The Malaysian government has paid back more than RM17 billion in excess tax refunds covering over three million individual and corporate cases up to September 2026.
The Ministry of Finance disclosed that, as of September 30, 2026, the government had cleared tax overpayment refunds amounting to RM17.15 billion across 3.23 million taxpayer cases. Refunds were split between RM6.38 billion to roughly 3.1 million individual filers and RM8.95 billion to more than 130,000 corporate entities, including micro, small and medium enterprises. The Inland Revenue Board highlighted new processing strategies that allocate refunds based on the age of outstanding claims and give priority to MSMEs and companies facing liquidity issues.
Officials emphasized that prompt settlement aligns with efforts to improve tax administration efficiency and protect taxpayers’ rights under the MADANI Government’s fiscal reform programme. The figures were provided in response to a parliamentary query by Lim Guan Eng regarding refund timelines and compensation for corporate taxpayers.
Why it matters
Timely tax refunds improve cash flow for individuals and businesses, supporting economic stability.
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