Kuala Lumpur, 12 September 2025 — The Inland Revenue Board of Malaysia (LHDN) has announced that through its audit, investigation, and enforcement activities, it has collected an additional RM16.95 billion in revenue. The amounts were gathered from uncovering under-declared income, non-compliance, and other discrepancies in tax filings.
According to LHDN, these collections come from several sectors and taxpayer segments—ranging from large corporations to individuals—and reflect the agency’s intensified efforts to clamp down on tax avoidance and ensure compliance. LHDN noted that many of the cases resolved involved cross-border transactions, transfer-pricing issues, and misreporting of revenue sources.
Officials said this sum represents a significant achievement in bolstering government coffers, especially at a time when Malaysia is working to meet ambitious fiscal and developmental goals. The revenue boost will help mitigate the gap between projected tax targets and actual collections for the current fiscal year.
LHDN also affirmed that its audit and investigation divisions will continue to leverage data analytics, inter-agency cooperation, and enhanced risk-profiling methods to detect non-compliance more effectively. The authority expects the downstream effects of this enhanced enforcement to include greater voluntary compliance among taxpayers and an increase in overall tax revenues in subsequent years.
Tax analysts welcomed the announcement but cautioned that while such windfalls are positive, they also signal that pervasive compliance gaps still exist. They stressed the need for stronger transparency, taxpayer education, and simpler tax filing processes to reduce inadvertent errors and discourage deliberate evasion.
