KUALA LUMPUR — Taxpayers must accurately declare their income via e-Filing on the MyTax Portal or through manual forms at the Inland Revenue Board of Malaysia (IRB) office to ensure a smooth refund process for overpaid taxes.

IRB Revenue Collection Department principal assistant director Masnudiah Abdullah said the step was important to ensure refunds for excess tax paid were made within the period stipulated in the Board Client’s Charter, which is 30 working days after e-Filing submission.

“This tax refund is not a gift or bonus from HASiL (IRB), but the right of taxpayers who have complied with tax laws, and it is their responsibility to declare their income accurately,” she said on Bernama Radio’s Tax Clinic programme today, which discussed the topic ‘Ketahu Hak Anda: Bayaran Balik Cukai’.

Masnudiah explained that a tax refund was made when the amount of tax paid or deducted exceeded the actual amount imposed, including cases where monthly tax deductions (PCB) were higher than the actual tax, tax relief claims were approved, or business income was lower than the estimates in CP500 or CP204.

She said the refund process commenced when the taxpayer submitted an Income Tax Return Form (BNCP) manually or via the e-Filing system, which would automatically calculate the tax and notify the taxpayer of their refund eligibility.

“However, refund delays can still occur due to several factors, including incomplete, invalid or inactive bank account information; taxpayers having tax arrears from previous years; and the registered bank account not belonging to the taxpayer, which requires further checks,” she said.

“For example, even though taxpayers are eligible for a tax refund for 2024, any tax arrears from 2023 will be deducted from the refund amount first,” she said.