The IRB didn’t refund your taxes within 30 days? The Department of Revenue will pay you 2% interest.
According to the official website of the Inland Revenue Department (LHDN), taxpayers can receive their refunds within 30 working days after filing their personal income tax (PIT) forms. This measure is limited to those taxpayers who file PCB and CP500.
If you are filing your personal income tax form through e-Filling, then you can receive your refund within 30 working days of submitting the form. For taxpayers who submit their personal tax return by mail or manually, they can receive their refund within 90 business days.
If a taxpayer is late in receiving his or her refund, he or she can check with the nearby Inland Revenue Department. The Inland Revenue will also pay 2% interest based on the number of days the refund is delinquent, and the 2% interest is calculated as follows:
Tax Refund x (Total no of days late) / (365 days) x 2%
Tax Refund x (Total no of days late / (365 days) x 2%)
For example, if the Inland Revenue owes you RM100 tax for up to 15 days, then the interest you can earn is RM0.08.
RM100 X 15 / 365 X 2% = RM0.08
