Kuala lumpur: 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, companies are now permitted to revise their tax estimates in the eleventh month, a change from the previous allowance for revisions in the sixth, ninth, or both months.

According to BERNAMA News Agency, Lim explained that through this revision, taxpayers can amend their estimated tax based on their actual tax liability. This approach aims to help minimize instances of overpayment by ensuring the tax estimate closely aligns with the actual tax amount, as stated by Lim in response to a supplementary question from Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) during a parliament special chamber session.

Additionally, Lim highlighted that LHDN prioritizes small and medium enterprises (SMEs) and companies experiencing cash flow difficulties. The agency has implemented several strategies to strengthen and streamline the tax refund process, ensuring that allocations are distributed fairly and efficiently, with a focus on resolving older outstanding cases first.

“Among the measures introduced is the adoption of the first-in, first-out (FIFO) concept, which allows older refund claims to be processed first,” Lim added. “Refunds are also distributed proportionately based on the age of the outstanding claims,” she concluded.