KUALA LUMPUR (Oct 13): The government has completed RM17.15 billion in excess tax refunds involving 3.23 million taxpayer cases in the first nine months of 2026, according to the Ministry of Finance (MOF).

Of the total refunds paid as at Sept 30, RM6.38 billion went to 3.1 million individual taxpayers, while RM8.95 billion was paid to more than 130,000 corporate taxpayers, including micro, small and medium enterprises (MSMEs), the MOF said in a written parliamentary reply on Tuesday.

However, the ministry did not explain how the remaining RM1.82 billion was accounted for.

It was responding to Lim Guan Eng (Bagan-Pakatan Harapan), who asked when excess tax refunds and 2% compensation for corporate taxpayers for the 2025 year of assessment would be paid. He also sought a breakdown of outstanding refunds by year of assessment and the number of taxpayers affected.

The ministry said the government settled RM22.45 billion in excess tax refunds involving 3.7 million taxpayer cases in 2025, the highest amount in the past five years.

For compensation on late tax refunds, the government paid RM23.64 million involving 187,381 cases in 2025.

The amount rose to RM109 million involving more than 270,000 taxpayer cases in the first nine months of 2026, as at Sept 30, the MOF said.

The ministry said the Inland Revenue Board (IRB) had implemented measures to ensure refunds were distributed fairly and efficiently based on how long claims had been outstanding, while prioritising MSMEs and companies facing cash-flow difficulties.

The MOF also pledged to settle outstanding tax refunds promptly to improve tax administration and protect taxpayers’ rights, in line with the Madani government’s fiscal reform agenda.

“The government will ensure that its commitment to pay compensation is fully honoured. Eligible taxpayers who have yet to receive compensation may contact the IRB for further checks,” it said.

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