Inland Revenue Board of Malaysia (IRBM / LHDN)

The Inland Revenue Board of Malaysia (IRBM), also known as Lembaga Hasil Dalam Negeri (LHDN), is a pivotal governmental agency tasked with handling taxation and revenue matters in Malaysia.

By
Ajith Kumar M
March 28, 2024
3 min

The Inland Revenue Board of Malaysia (IRBM), also known as Lembaga Hasil Dalam Negeri (LHDN), is a pivotal governmental agency tasked with handling taxation and revenue matters in Malaysia.

Established on March 1, 1996, the IRBM, originally known as the Department of Inland Revenue Malaysia, plays a critical role in the country's revenue collection efforts. The agency operates under the authority of the Inland Revenue Board of Malaysia Act 1995, which empowers it with substantial responsibilities in managing the nation's finances.

One of the primary duties of the IRBM is to collect revenue on behalf of the Ministry of Finance (MOF). This involves administering various taxes under several key legislations, including 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, and the Stamp Act of 1949.

The functions and responsibilities of the IRBM are multifaceted and extend beyond mere tax collection. These include:

  1. Tax Collection and Administration: Acting as the government's tax collector, the IRBM is responsible for the administration, assessment, enforcement, and collection of various taxes. These taxes encompass income tax, petroleum income tax, real property gains tax, stamp duties, estate duties, and other related levies.
  2. Participation in Tax-Related Activities: The IRBM engages in tax-related activities both within and outside Malaysia, collaborating with international tax organizations and participating in global tax forums.
  3. Advisory Role: The agency serves as an advisor to the government on tax-related matters. This includes providing guidance to various ministries and statutory bodies on taxation policies and practices.
  4. Legal Functions: The IRBM is empowered to perform additional functions as mandated by other written laws, ensuring compliance with the nation's tax regulations.
  5. Collection Agency: Beyond its tax-related duties, the IRBM also acts as a collection agency for organizations involved in the recovery of overdue loans.

Inland Revenue Board of Malaysia (IRBM) is a crucial institution in the country's fiscal framework, responsible for tax collection, administration, and advisory roles. Its operations are essential for the effective management of Malaysia's financial resources and the implementation of tax policies that support the nation's economic development.