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The Inland Revenue Board (LHDN) has noted that some individual taxpayers accidentally selected 'Yes' for the 'Tax borne by employer' section while filing their income tax returns
In a statement today, 18 March, LHDN said this may have caused delays in excess tax refunds for some taxpayers for the 2025 Year of Assessment.
A viral post on X also highlighted this common mistake, noting that taxpayers who pay tax through monthly salary deductions should select "No (Refund payable to employee)", as any refund should go to them rather than their employer.
The post also said many first-time filers often get confused by this section.
However, LHDN assured that affected taxpayers do not need to submit amendments if they made a mistake in this section
The board said it has already reviewed and identified the affected cases, and will process the excess tax refunds for those cases confirmed as marking errors.
"Therefore, taxpayers do not need to submit amendments to their income tax return for the Year of Assessment 2025 to correct this mistake," it said.
For context, employers in Malaysia are required to submit employee income details to LHDN and provide employees with EA Forms
This allows LHDN to verify whether the tax is actually borne by the employer or the employee.
Additionally, if you pay your taxes through Potongan Cukai Bulanan (PCB) — meaning deductions are made through your monthly salary — LHDN already has those records under your IC number. This shows the tax was paid by you, not your employer.
So, if PCB payments exist but you ticked 'Yes' to 'Tax borne by employer", LHDN can spot the mismatch.
That said, LHDN reminded taxpayers to ensure their details are submitted accurately, as its refund system processes payments automatically based on the information provided
"The accuracy of the information provided is important to ensure the refund process can be carried out smoothly and without delays," it said.
LHDN added that it remains committed to ensuring tax refunds are managed fairly, transparently, and with integrity as part of ongoing efforts to strengthen the country's tax administration efficiency.
