THE nation recorded its highest tax refund payments in five years in 2025, following a sharp acceleration in disbursements at the end of the year, according to the Ministry of Finance.
The ministry said total tax refunds settled by the Inland Revenue Board amounted to RM22.45 billion in 2025, involving some 3.6 million taxpayers.
The figure was bolstered by an additional RM7.5 billion paid out in December 2025, significantly surpassing the RM4 billion supplementary allocation for excess tax refunds that had been announced earlier.
The Ministry of Finance (MOF) was responding to a parliamentary question from Chong Chieng Jen (PH–Stampin) on outstanding tax refunds owed by the government to taxpayers who had overpaid, as well as the number of taxpayers affected.
Looking ahead, the ministry said the Inland Revenue Board’s priority in the coming year would be to settle corporate tax refunds for the 2023 year of assessment in the first quarter of 2026, while refunds for the 2024 year of assessment are expected to be completed by the end of 2026.
“Meanwhile, excess tax refunds, regardless of the age of the case, will be made to all taxpayers other than companies,” the ministry said. - January 23, 2026
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