Excess Tax Payments Cannot Be Used To Offset Future Liabilities -- Lim
KUALA LUMPUR, Nov 3 (Bernama) -- The Inland Revenue Board (LHDN) does not allow companies to offset excess tax payments against future tax liabilities, said Deputy Finance Minister Lim Hui Ying.
Instead, she said companies are now allowed to revise their tax estimates in the eleventh month, compared to previously being allowed to do so in the sixth, ninth, or both months.
"Through this revision, taxpayers can amend their estimated tax based on their actual tax liability.
"With a tax estimate that is closer to the actual tax amount, it can help minimise situations where taxpayers overpay," she said in response to a supplementary question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) on the issue of delayed tax refunds to companies at the parliament’s special chamber session today.
In addition, Lim said LHDN also prioritises small and medium enterprises (SMEs) and companies facing cash flow problems. She added that 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 (FIFO) concept, which allows older refund claims to be processed first. Refunds are also distributed proportionately based on the age of the outstanding claims," she added.
-- BERNAMA