Inland Revenue Board of Malaysia (IRBM/LHDN)
What is the IRBM (LHDN) and what does it do?
The Inland Revenue Board of Malaysia (IRBM), also known as Lembaga Hasil Dalam Negeri (LHDN) is one of Malaysia’s most important agencies when it comes to tax and revenue matters.
The IRBM was established on the 1st of March 1996 (formerly known as the Department of Inland Revenue Malaysia) and is one of the primary agencies for revenue collection in Malaysia. IRBM’s responsibility includes collecting revenue on behalf of the Ministry of Finance (MOF).
IRBM’s roles and responsibilities
IRBM’s responsibility includes collecting revenue on behalf of the Ministry of Finance (MOF). Given that the IRBM was established according to the Inland Revenue Board of Malaysia 1995 which provides it with more authority when it comes to managing finances in the country.
The IRBM is responsible for the overall administration of taxes that come under the following acts:
- The Income Tax Act 1967
- The Petroleum (Income Tax) Act 1967
- The Real Property Gains Tax Act 1976
- The Promotion of Investments Act 1986
- The Labuan Offshore Business Activity Tax Act of 1990
- The Stamp Act of 1949
Functions and Duties of the IRBM
1. To act as a tax collector on behalf of the government and provide services such as administration, assessment, enforcement and collection of taxes. These include but are not limited to income tax, petroleum income tax, real property gains tax, stamp duties, estate duties and others.
2. Participate in tax-related activities inside or outside of Malaysia.
3. To act as an advisor to the government on any tax-related matters, as well as corresponding ministries and statutory bodies.
4. To perform such other functions as are conferred on the Board by any other written law.
5. Serving as a collection agency for and on behalf of any organisation engaged in the recovery of loans that are past due.
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Disclaimer: The information in this article is current as at 20-Oct-2022, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related corporate bodies (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified, and no warranties are given that it is complete, accurate, up-to-date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.
