Taxpayers who are expecting a refund after filing their income tax returns this year may start receiving the payment soon, as the Inland Revenue Board of Malaysia (LHDN) says refunds will begin to be credited in stages starting from the second week of March 2026.

The refunds apply to individual taxpayers who have submitted their Income Tax Return Form for the 2025 Year of Assessment following the opening of the e-Filing system on 1 March.

Tax refunds are issued when the amount of tax paid during the year, usually through monthly salary deductions or advance payments, exceeds the final tax amount calculated in the return.

e-Filing Refunds Are Processed Faster

How quickly a refund is credited largely depends on how the tax return was submitted.

According to LHDN, refunds for returns submitted through e-Filing are typically processed within 30 working days under the board’s Client Charter, while returns submitted manually may take up to 90 working days to process.

Because e-Filing submissions enter the system electronically and require less manual handling, they are generally processed faster than paper submissions.

In some cases, refunds may be issued earlier than the stated timelines if the information provided by the taxpayer is complete, accurate, and does not require additional verification.

Refunds Credited Directly Into Bank Accounts

Tax refunds are paid directly into the bank account registered with LHDN through the taxpayer’s return.

This means the refund will be credited automatically once the return has been processed and approved. Taxpayers do not need to submit a separate request to receive the payment.

LHDN advised taxpayers to ensure that their bank account details are correct and up to date, as incorrect or outdated banking information may delay the refund process even after the return itself has been approved.

Verification Checks May Extend Processing Time

In some situations, LHDN may carry out additional checks before releasing the refund.

These checks usually involve verifying income declarations, tax relief claims, or supporting information provided in the return. If additional verification is required, the processing period may take longer than the standard timeline.

Returns that contain complete and consistent information typically move through the system more quickly.

Early Filers Usually Receive Refunds First

As refunds are issued in stages, taxpayers who submit their returns earlier are generally among the first to receive their refunds once processing begins. So, if you want to get your refund quickly the odds improve if you file earlier, and electronically.

LHDN said it remains committed to improving service delivery and ensuring that tax matters are handled efficiently for taxpayers.

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