Kuala lumpur: The Inland Revenue Board (IRB) has set an ambitious target to complete corporate tax refunds for excess payments for the year of assessment (YA) 2023 by the first quarter of 2026 and for YA 2024 by the end of this year. This initiative was announced by Deputy Finance Minister Liew Chin Tong in a special chamber session in the Dewan Rakyat.

According to BERNAMA News Agency, the IRB is currently focusing on addressing outstanding corporate tax refunds in a phased manner. Deputy Finance Minister Liew Chin Tong emphasized that this effort aligns with ongoing initiatives to streamline the management of tax refunds, ensuring they are handled more fairly and in an orderly fashion.

The IRB has developed several strategies to expedite the refund process as part of its improvement measures. One notable strategy is the adoption of the 'first in, first out' (FIFO) concept. This approach prioritizes older refund backlogs, ensuring that the distribution of excess tax refunds is balanced based on the age of the arrears.

Furthermore, Liew highlighted that full payments will be made for outstanding refunds to individual taxpayers. Priority will also be given to micro, small, and medium enterprises, as well as companies experiencing cash flow problems, to facilitate their financial stability.