Tax Refunds: How to Claim and When They Are Credited

When does a tax refund arise?

A tax refund arises when you overpay tax compared with the actual tax charged. Processable overpayments include:

• PCB under section 107 ITA (employer's monthly tax deductions);
• CP500 instalments under section 107B ITA;
• Other excess reliefs (e.g. zakat relief, foreign tax) that make the tax payable lower than what has already been paid.

Source: HASiL — Tax Collection Framework 2021, Chapter H (see Official sources section).

Claim period: 5 years

A refund claim can be made within five (5) years after the end of the year of assessment concerned.

Source: HASiL — Tax Collection Framework 2021, Chapter H, 9.2.2 (see Official sources section).

How long does processing take?

In line with the HASiL Client Charter:

Method of BNCP submission	Processing period
e-Filing	up to 30 working days
Manual	up to 90 working days

Refunds are processed earlier if information is complete and accurate. HASiL begins crediting in stages (e.g. the second week of March 2026 for BNCP YA 2025).

Source: HASiL — Media Statement 6 March 2026 (see Official sources section).

Delay compensation: 2%

If HASiL is late in processing a refund beyond certain thresholds, you are entitled to 2% compensation under section 111D ITA (from YA 2013):

Situation	Threshold
BNCP e-Filing	after 90 days
BNCP by post	after 120 days
Business cases	after 7 months from the end of the accounting date

Source: HASiL — Compensation Guidelines GPO 2/2021; Tax Collection Framework 2021 (see Official sources section).

Documents for refund cases

For refund cases, the following working sheets must be submitted with the BNCP:

• HK-6 (tax deducted s.110 others);
• HK-8 / HK-9 (foreign tax deducted, if applicable).

Also keep records for 7 years.

Source: Form B Explanatory Notes — YA 2025 (see Official sources section).

How are refunds paid?

• EFT to your bank account — make sure the name and account number are correct and current.
• Refund voucher — for those who did not provide an account number and are resident in the country.
• Cheque — processed within 14 working days after the date of approval.

If you have not received your refund after more than 3 months, contact the LHDNM office handling your file, the public relations officer, or Hasil Care Line at 03-8911 1000.

Source: HASiL — Individual FAQ Q58–Q61; Tax Collection Framework 2021 (see Official sources section).

Key takeaways

• A refund arises when you overpay (PCB s.107, CP500 s.107B).
• Claim within 5 years after the end of YA.
• e-Filing: up to 30 working days; manual: up to 90 working days.
• 2% compensation (s.111D) if late beyond thresholds — current thresholds this item still awaits official confirmation from HASiL — check again with HASiL before deciding.
• Make sure your bank account details are accurate; keep records for 7 years.