Firms won’t be allowed to offset excess payments against future tax liabilities
The Inland Revenue Board (LHDN) will not allow companies to offset excess tax payments against future tax liabilities, said deputy finance minister Lim Hui Ying.
Instead, companies are now allowed to revise their tax estimates in the 11th month, compared to previously being allowed to do so in the sixth, ninth or both months.
Lim said this allows companies to make more accurate tax estimations based on their actual financial position, allowing revised estimates closer to their true tax liability.
“Estimates closer to the actual tax amount can help minimise situations where taxpayers overpay,” Bernama reported her as saying in the Dewan Rakyat’s special chamber session today.
She was responding to a supplementary question from Wee Ka Siong (BN-Ayer Hitam) on the issue of delayed tax refunds to companies.
The Edge reported that several MPs 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 LHDN also prioritises small and medium-sized enterprises and companies facing cash flow problems.
She said the agency has implemented several strategies to strengthen and streamline the tax refund process, ensuring that allocations are distributed fairly and efficiently, with priority given to older outstanding cases.
“Among the measures introduced is the adoption of the first-in, first-out concept, which allows older refund claims to be processed first,” she said.
