KUALA LUMPUR (Nov 3): The Inland Revenue Board (IRB) has no plans to allow companies to offset excess tax payments against future tax liabilities, said Deputy Finance Minister Lim Hui Ying.

Addressing the issue of delayed tax refunds to companies in the special chamber of Parliament on Monday, Lim said instead, companies are now allowed to revise their tax estimates in the sixth, ninth and eleventh month of the financial year, compared with only the sixth and ninth month previously.

She said the move enables companies to make more accurate tax estimations based on their actual financial position, allowing revised estimates that are closer to their true tax liability and reducing the likelihood of overpayment.

“The IRB will also prioritise small and medium enterprises and companies facing cash flow challenges [in processing tax refunds],” she added.

Several members of Parliament had earlier raised concerns over refund delays, with some companies reportedly receiving full refunds only after five years.

They urged the government to consider allowing excess tax payments to be offset against future tax liabilities.

Lim said the IRB has also implemented several strategies to strengthen and streamline its tax refund process, ensuring government allocations are distributed fairly and efficiently, with priority given to older outstanding cases.

Among the measures introduced, she said, is the adoption of the First In, First Out (FIFO) concept, under which older refund claims are processed first.

Refunds are also being distributed in a balanced manner based on the age of outstanding claims, she added.