The government has refunded RM14.7 billion in excess tax payments covering 3.17 million taxpayer cases as of 30 June 2026. Of that total, RM5.75 billion went to 3.1 million individual taxpayers, while the remaining RM8.95 billion went to 76,511 companies, including 23,356 micro, small, and medium enterprises (MSMEs).

Who Got Refunded And Who Gets Paid First

Individual taxpayers account for nearly all the refund cases, but a smaller share of the money. Spread across 3.1 million people, the RM5.75 billion works out to an average of roughly RM1,850 per case, although your own refund depends on how much you overpaid.

Companies received far larger sums per case. The 76,511 corporate refunds averaged around RM117,000 each, reflecting the bigger tax bills that businesses run up over a financial year. Close to a third of these corporate cases involved MSMEs.

The Inland Revenue Board (LHDN) processes refunds based on how long a case has been outstanding, so the oldest claims are settled first. The MoF said this is part of a wider effort to make the refund process fairer and more consistent.

At the same time, LHDN gives priority to MSMEs and companies facing cash flow difficulties, regardless of how old their cases are. A refund credited earlier in the month can be the money a small business uses to pay suppliers or salaries on schedule.

Refunds Under Verification Still Need Your Attention

Not every refund has been paid out. The MoF said some claims are still going through verification, which involves checking the information and supporting documents that taxpayers have submitted. The government has committed to paying all outstanding refunds as quickly as possible once these checks are complete.

If your refund falls into this group, respond promptly when LHDN asks for additional documents, as your case cannot be settled until the checks are complete. Under LHDN’s Client Charter, refunds for returns submitted through e-Filing are typically processed within 30 working days, while manual submissions can take up to 90 working days, and returns with complete and consistent information tend to move through faster. You can read more about how refund processing timelines work. You can check the status of your refund through the MyTax portal. 

It also helps to make sure LHDN has your current bank account details, since refunds are credited directly into the account registered with them. A refund sent to a closed or inactive account does not automatically get reissued, and chasing a failed payment through LHDN adds weeks to the process, which is why LHDN has been reminding taxpayers to keep their MyTax details updated year-round. Do keep your receipts and supporting documents for seven years too, since LHDN can still request them even after your refund has been paid. If you are getting ready for next year’s filing, our income tax guide for 2026 (YA 2025) covers the full process from reliefs to refunds.

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