Malaysia Settles RM20.27 Billion in Excess Tax Refunds Through October 2026

KUALA LUMPUR – A total of RM20.271 billion in excess income tax refunds involving 3.65 million taxpayer cases was settled as of October 31, 2026.

Finance Minister II Datuk Seri Amir Hamzah Azizan said that out of the total amount, RM6.84 billion was refunded to 3.4 million individual taxpayers, while RM13.036 billion was paid to 206,234 corporate taxpayers, including micro, small, and medium enterprises (MSMEs).

"In executing these repayments, the government prioritizes excess tax refunds to individuals as well as MSME companies," he said during the committee-stage winding-up session of the Supply Bill for the Ministry of Finance in the Dewan Rakyat today.

Amir Hamzah said that in line with this approach, the number of taxpayers with excess tax balances was reduced by nearly half to around 550,000 taxpayers as of Oct. 31, 2026, compared to over one million on Dec. 31, 2025.

"The government is also committed to ensuring that refund backlogs are fully cleared promptly as part of efforts to improve tax administration efficiency and protect taxpayers' rights, in line with the MADANI Government's fiscal reform agenda," he said when replying to questions raised by the Members of Parliament for Bachok, Klang, and Pendang.

Amir Hamzah added that the government remains committed to addressing excess income tax refund arrears to ensure full repayments are executed immediately.

A total of 27 MPs took part in the committee-stage debate for the Ministry of Finance. He noted that the views and feedback raised help the government examine how each allocation is managed and implemented for the benefit of the people.

Overall, the 2027 operating supply allocation for Purposes B.10, B.11, and B.12 increased to RM68.16 billion, compared to this year's revised allocation of RM61.5 billion. He said the increase reflects the MADANI Government's commitment to easing the cost of living and safeguarding the well-being of the people.