IRB Processes RM22.5 Billion In Tax Refunds In 2025
Inland Revenue Board of Malaysia (IRB) completed RM22.5 billion in tax refunds in 2025, involving 3,713,025 cases, following additional funding disbursed at the end of the year.
The total included an extra RM3.5 billion allocated between Dec 25 and Dec 31, 2025, which was used to clear outstanding refunds that were between one and two years old.
Priority was given to refunds involving small and medium enterprises (SMEs), the IRB said in the release.
The tax authority said the additional allocation has been fully processed and credited to eligible taxpayers as part of efforts to reduce the backlog of pending refunds.
Following the Prime Minister’s New Year 2026 address, the IRB said it is committed to resolving tax refunds arising from the Year of Assessment 2023 within the first quarter of 2026, while refunds linked to the Year of Assessment 2024 are targeted to be completed by the end of 2026.
The IRB also advised taxpayers to ensure their bank account details submitted to the authority are accurate and up to date to avoid delays, noting that some refunds could not be processed due to incorrect or missing banking information.
Refunds involving court disputes, outstanding tax arrears from other assessment years, or companies that have been wound up or dissolved remain excluded from processing.
The IRB said refund payments will continue to be carried out in stages, with priority given to larger amounts and outstanding cases involving SMEs.
