LHDN clarifies excess tax payments cannot offset future liabilities, but allows earlier tax estimate revisions to minimise overpayments.
KUALA LUMPUR: Companies cannot use excess tax payments to offset future tax liabilities, according to the Inland Revenue Board (LHDN).
Deputy Finance Minister Lim Hui Ying confirmed this policy during parliament’s special chamber session today.
She explained that companies are now permitted to revise their tax estimates in the eleventh month.
Previously, revisions were only allowed in the sixth, ninth, or both months.
“Through this revision, taxpayers can amend their estimated tax based on their actual tax liability,” Lim said.
“With a tax estimate that is closer to the actual tax amount, it can help minimise situations where taxpayers overpay.”
She was responding to a supplementary question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) regarding delayed tax refunds to companies.
Lim added that LHDN prioritises small and medium enterprises and companies experiencing cash flow problems.
The agency has implemented several strategies to strengthen and streamline the tax refund process.
These measures ensure 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.
Refunds are also distributed proportionately based on the age of the outstanding claims. – Bernama
