What is IRBM/LHDN and what do they do?
Inland Revenue Board Malaysia (IRBM) is considered as one of the most important agency in Malaysia. Let’s read on what exactly does IRBM do.
By AZIZAM AZIZAN
Inland Revenue Board of Malaysia (IRBM), also known as Lembaga Hasil Dalam Negeri (LHDN) in Malaysia is one of the main agencies responsible for collecting revenue for the Ministry of Finance. The Ministry of Finance, also known as MOF, is the governing body which is responsible for all government expenditure and revenue raising. The MOF is responsible for the development of economic policy and to prepare the federal budget yearly for Malaysia. LHDN was established in accordance with the Inland Revenue Board of Malaysia Act 1995 to give it more autonomy especially in financial and personnel management as well as to improve the quality and effectiveness of tax administration.
ROLES AND RESPONSIBILTIES OF IRBM
The main roles and responsibilities of LHDN can be summarized as being responsible for the overall administration of the direct taxes which fall under the following acts:
1. The Petroleum (Income Tax) Act 1967
2. The Real Property Gains Tax Act 1976
3. The Income Tax Act 1967
4. The Promotion of Investments Act 1986
5. The Labuan Offshore Business Activity Tax Act of 1990
6. The Stamp Act of 1949
FUNCTIONS AND DUTIES OF IRBM
LHDN is responsible for the following functions and duties:
1. To act as agent of the Government and to provide services in administering, assessing, collecting and enforcing payment of various types of taxes (income tax, petroleum income tax, real property gains tax, estate duty, stamp duties and such other taxes as may be agreed between the Government and the
Board)
2. To participate in or outside Malaysia in respect of matters relating to taxation.
3. To provide advice to the government on any matters which are related to
taxation, in addition to being required to liaise with the corresponding ministries and statutory bodies.
4. To perform such other functions as are conferred on the Board by any other written law.
5. To act as a collection agent for and on behalf of any body involved in respect to the recovery of loans due for repayment.