The Inland Revenue Board (IRB) has processed RM18 billion in outstanding tax refunds involving 3.54 million cases as of 22 December 2025, following the additional allocation announced by the government to expedite the settlement of payment arrears.
For the period 1 January to 8 December 2025, IRB processed refunds totaling RM15 billion, involving 3.52 million cases. This amount covers the majority of outstanding payments before the implementation of the additional allocation in December.
During the period 9 to 15 December 2025, IRB processed and credited additional refunds of RM1 billion, involving 6,480 cases. This was followed by another allocation of RM1 billion for the period 16 to 18 December, involving 1,339 cases.
For the next period, which is 19 to 22 December 2025, the IRB processed another RM1 billion in refunds, involving 13,111 cases, bringing the total number of refunds processed to that date to RM18 billion.
Overall, of the additional RM4 billion allocation announced by the government, RM3 billion was successfully processed and credited during the period 9 to 22 December 2025, involving 20,930 cases.
The remaining allocation of RM1 billion is expected to be processed and fully settled before the end of December 2025.
The IRB announced that the first additional fund of RM1 billion was used to settle refund arrears that were more than three years old, regardless of the number of claims. Meanwhile, the next RM2 billion was channeled to settle outstanding cases that were two to three years old, with priority given to small and medium enterprises (SMEs).
On 7 December 2025, Prime Minister Datuk Seri Anwar Ibrahim announced an increase in the tax refund allocation from RM2 billion to RM4 billion, as a measure to expedite the payment of outstanding payments to taxpayers.
At the same time, the IRB advises taxpayers to ensure that the bank account information reported is accurate and up-to-date to facilitate the refund process. The IRB also reiterates its commitment to continue resolving refunds in a phased and orderly manner, with a focus on outstanding amounts and cases involving SMEs.
