Tax updates: Have you received your tax refunds?

Tax refunds have always been a popular topic among all, especially on the timing of the receipt. There are several factors that will determine the processing of the tax refund within the time frame. Based on the records gathered by the Inland Revenue Board of Malaysia (“IBRM”), failure in payment of tax refunds to the recipients are due to the following reasons:

• Undelivered cheques due to difference in taxpayer’s address with the address registered in IRBM’s database.
• Mismatch of bank information, account number and identification number / company registration number between IBRM’s database and with that of the bank; and
• Closed or inactive bank account

Hence, taxpayers are advised to update their personal and banking information in the annual Income Tax Return Form (“ITRF”). Checklist for information to be updated are as follows:

• Personal identification number
• Bank account number
• Correspondence address
• Telephone number
• E-mail address
• Company registration number (Company / Organisation category)

Effective 1st January 2020, income tax refund will be fully made using the electronic method of e-payment. IBRM will also increase the use of online tax refund payment transactions via the Electronic Fund Transfer (EFT) method.

If you need further clarification or information, please do not hesitate to contact us.

Source:

• http://lampiran2.hasil.gov.my/pdf/pdfam/IRBMMedia_18032019_Reasons_Why_Tax_Refunds_Fail_To_Be_Processed.pdf
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