All taxpayers in Malaysia urged to check their income tax status before planning to travel abroad: HASiL

The Inland Revenue Board has stressed that it has the authority to prevent individuals or their companies from leaving Malaysia due to outstanding tax obligations.

The Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia, or HASiL) is urging all taxpayers to check their income tax status before planning any travel abroad, in case of any travel restrictions or tax arrears they may be facing.

In its announcement on Tuesday (10 December 2024), the Board said that under the provisions of Sections 104 and 75A of the Income Tax Act 1967 and Section 22 of the Real Estate Gains Tax Act 1976, it has the authority to prevent individuals or their companies from leaving Malaysia due to outstanding tax obligations. These travel restrictions are applied as a last resort, specifically to those who have ignored repeated reminders to settle their tax liabilities.

To aid taxpayers, HASiL encourages checking outstanding tax statuses using the MyTax portal. For verifying travel restriction status, individuals can use the Immigration Department of Malaysia's official portal.

As of 30 November 2024, the Board has issued a total of 203,123 travel restrictions:

Starting March 4, 2024, the process for removing travel restrictions can be done online through the e-Sekatan Perjalanan service available on the MyTax portal. Alternatively, applications for lifting travel bans may still be processed using existing methods by contacting the HASiL Contact Centre at 03-8911 1000 or by visiting a HASiL office. Should any company or individual have queries about the e-Sekatan Perjalanan service or removal of travel restrictions, they may refer to HASiL's set of frequently asked questions here.

HASiL emphasised that these travel bans are not designed to infringe on individual rights, but rather to ensure compliance with tax laws, further highlighting the importance of maintaining tax responsibilities to avoid future complications.

The agency has declared confidence "that fair and efficient tax administration can enhance public trust in the national taxation system, contributing to the nation's development and prosperity."

Table & image: HASiL