Many taxpayers in Malaysia look forward to tax season not only as a time to fulfil their obligations, but also with the hope of receiving a tax refund. For the 2025 assessment year, the Inland Revenue Board of Malaysia has announced that eligible taxpayers will begin receiving their refunds starting from the second week of March 2026. The payments will be credited in stages as the processing of submitted tax returns is completed.

This update provides reassurance for individuals who have already submitted their income tax declarations through the available filing channels, particularly those who used the e-Filing system when it opened earlier this month.

Tax Refunds for Assessment Year 2025

According to the Inland Revenue Board of Malaysia (LHDN), the upcoming refund payments involve individual taxpayers who have submitted their Income Tax Return Form for the 2025 Assessment Year. The filing process officially began when the e-Filing service opened on 1 March.

Once a taxpayer's submission has been processed and confirmed to be eligible for a refund, the amount will be credited directly into the bank account registered with LHDN. The payments will not all be issued at once. Instead, they will be distributed gradually beginning in the second week of March, depending on when each return is processed and approved.

For many taxpayers, this staged approach helps ensure that refunds are handled systematically while maintaining the accuracy of the review process.

Processing Time Depends on the Filing Method

LHDN also reminded taxpayers that the processing timeline depends on how the tax return was submitted.

Under the organisation's customer charter, returns submitted through the e-Filing system are typically processed within up to 30 working days. This faster timeline reflects the efficiency of digital submissions, which allow the system to verify and process information more quickly.

For taxpayers who still choose to submit their returns manually, the processing period can take up to 90 working days. Manual submissions require additional verification and handling, which naturally extends the processing timeline compared to online submissions.

However, LHDN noted that in cases where the information provided is complete, accurate, and does not require further review, refunds may be issued earlier than the stated processing periods.

Ensure Bank Account Details Are Accurate

To avoid delays, LHDN strongly advises taxpayers to ensure that the bank account information provided in their tax records is correct and up to date. Since refunds are credited directly into the registered bank account, any errors in account details could slow down the payment process or cause complications.

Keeping this information updated is one of the simplest ways taxpayers can ensure their refunds are processed smoothly and credited without unnecessary delays.

Continued Efforts to Improve Taxpayer Services

The Inland Revenue Board also reaffirmed its commitment to improving the quality of services provided to taxpayers. Efforts are ongoing to streamline tax administration processes and enhance the efficiency of refund processing.

As Malaysia continues expanding its digital tax infrastructure, services such as e-Filing play an increasingly important role in making tax compliance easier while speeding up administrative processes like refunds.

For taxpayers who have already completed their submissions, the coming weeks may bring some welcome news in the form of a credited tax refund. As long as the submitted information is accurate and the account details are correct, the process should move forward smoothly.

Final Thoughts

Tax refunds are always a welcome outcome after completing annual tax obligations. With the Inland Revenue Board beginning staged payments from the second week of March 2026, many Malaysians who filed their returns early may start seeing their refunds sooner rather than later. Ensuring that all details are correct during submission remains the best way to guarantee a smooth and timely refund process.