Taxpayers who wish to challenge a tax assessment must submit their appeal using Form Q within 30 days from the date the assessment notice is issued. According to Inland Revenue Board of Malaysia (LHDN) Dispute Resolution Department director, Norhaslinda Bukhari, only appeals submitted through the prescribed form are recognised under the Income Tax Act.

Many taxpayers are still unclear about the correct method, including using the wrong forms, sending incomplete information, or trying to appeal through letters or verbal requests. These are not accepted under the law. Form Q can be downloaded from LHDN’s portal, and it must include the year of assessment, the amount of tax imposed, the grounds for appeal, and the signature of an authorised representative. Supporting documents may be attached if more space is needed.

Appeals Submitted After The Deadline

If an appeal is made after the 30-day limit, taxpayers may still proceed by submitting Form N and explaining the reason for the delay. Valid grounds may include health conditions, long-term medical treatment, or situations such as floods that damage important documents.

How LHDN Handles An Appeal

Once Form Q is received, LHDN will verify that it was submitted within the required timeframe. Taxpayers will then receive an acknowledgement letter confirming that the appeal has been registered.

Under Section 101 of the Income Tax Act, LHDN has 12 months to review and decide on the case. The first three months are used by state offices or special branches to determine whether the issue can be resolved early. If not, the matter will be forwarded to the Dispute Resolution Department.

What Happens During Dispute Resolution Proceedings

During these proceedings, the taxpayer, their tax agent or lawyer, and an LHDN panel chaired by the department director will discuss the issues raised. LHDN will review the relevant facts, documents, legal considerations, and tax practices.

Taxpayers may propose settlement options. If no agreement is reached within the 12-month period, the case must be referred to the Special Commissioners of Income Tax for a formal hearing.

Malaysia’s Move Toward Digital Appeals

As part of the country’s digital tax transformation, LHDN launched a phased pilot of the e-Appeal system in September 2025 for selected taxpayers under the Large Taxpayers Branch and the Federal Territory of Kuala Lumpur.

Nationwide rollout will take place in stages once users are familiar with the system and technical performance is stable. The aim is to reduce errors, avoid delays, and provide a clearer process for taxpayers across Malaysia.

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