27th March 2026 - 3 min read
More taxpayers are choosing to file their income tax returns earlier this year, with one clear goal in mind, getting their refunds faster.
The Inland Revenue Board of Malaysia (LHDN) has observed a rise in early submissions for the Year of Assessment 2025, even though full figures will only be confirmed at the end of March. The early trend points to a shift away from last-minute filings, as more people move to submit their returns ahead of the deadline.
For many taxpayers, the timing of their submission has a direct impact on when refunds are received. LHDN processes returns on a first-in, first-out basis, subject to verification, which means earlier submissions are typically handled sooner.
Refunds for eligible taxpayers have already started to be credited in stages since the second week of March. This makes early filing one of the few ways to influence how quickly the money is returned.
In previous years, tax submissions often surged close to the deadline, as many taxpayers delayed filing until the final weeks. The current trend suggests a gradual change in behaviour, with more people choosing to complete their filings earlier.
According to LHDN, this reflects stronger awareness and a more proactive approach to tax compliance, particularly among those expecting refunds.
While filing early can help move your return up the queue, processing timelines still depend on how the return is submitted and whether additional checks are required.
Under LHDN’s client charter, refunds are typically processed within 30 working days for e-Filing submissions and 90 working days for manually submitted forms. Delays can still occur if the information provided is incomplete or requires further verification.
Submitting early is only part of the equation. Errors or missing details can slow down processing, even if the return was filed ahead of time.
Taxpayers are expected to declare all sources of income, including employment income, dividends, and rental income, while also checking their eligibility for tax reliefs and rebates. Reviewing submissions carefully before sending them can help avoid delays in both assessment and refunds.
The deadline for filing individual income tax returns for the Year of Assessment 2025 depends on the type of income.
For individuals without business income using Form BE, the deadline is April 30, with an e-Filing grace period until May 15. For those with business income using Form B, the deadline is June 30, or July 15 if filing electronically.
For taxpayers expecting a refund, filing early is becoming less about convenience and more about timing. Submitting returns ahead of the deadline can help bring forward when refunds are received, especially when combined with accurate and complete information.
As more taxpayers move away from last-minute submissions, early filing is starting to play a more practical role in managing personal cash flow, particularly during periods where extra funds can make a difference.
For a full breakdown of all the changes to tax reliefs for YA 2025, read our Income Tax Malaysia: What’s New for YA 2025? guide.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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