LHDN has reminded the public that unpaid taxes can result in overseas travel restrictions. Deputy Director-General of the Revenue Collection Department, Azaharuddin Mohd Ali, said many people are unaware of this consequence, which can affect both individuals and company directors.

Check Travel Status Before Making Plans

Azaharuddin advised travellers to check their travel restriction status before making any plans. This can be done through the Immigration Department’s official website or the MyTax Portal to avoid last-minute disruptions.

He explained that travel bans may be imposed on individuals or company directors with outstanding income tax, Real Property Gains Tax, or company tax. This applies to citizens and foreigners alike, directors of companies who own at least 20% of a company’s shares can expect unforgiving action.

Legal Basis for Travel Restrictions

LHDN is empowered under Section 104 of the Income Tax Act 1967 to impose travel restrictions. This enforcement is applied when taxpayers fail to settle their arrears and do not cooperate, despite receiving multiple opportunities through earlier notices and enforcement actions.

Azaharuddin stressed that LHDN does not enforce travel bans immediately. Taxpayers are first sent reminder letters and emails, and contacted by phone to resolve the matter.

Lifting a Travel Ban

To lift a travel restriction, full payment of outstanding taxes is required before an application for cancellation can be submitted. In certain cases, temporary relief may be granted if partial payment is made.

Temporary relief can be requested for up to three months, depending on the agreed payment terms with LHDN. Taxpayers must ensure the remaining arrears are settled in full within the agreed instalment period and rates.

Since 4 March 2025, taxpayers can apply online to lift travel bans via the e-Travel Restriction Cancellation service on the MyTax Portal. Applications that meet the eligibility criteria will be processed within five working days.

More Than a Legal Matter

Azaharuddin also cautioned that travel restrictions due to tax arrears carry more than legal implications. They can damage a person’s reputation, affect personal relationships, and harm career prospects.

He stressed that the restrictions are not intended to embarrass anyone, but serve as enforcement after several reminders. Taxpayers facing financial difficulties are encouraged to contact LHDN to discuss possible solutions, such as payment by instalments.

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• TAGS:
• Azaharuddin Mohd Ali
• LHDN
• Overseas Travel Bans
• Travel Restrictions
• Unpaid Taxes