182,666 Malaysians Banned From International Travel For Failing To Pay Income Tax

The travel restrictions were imposed by the Inland Revenue Board of Malaysia (LHDN).

Cover image via Bernama & New Straits Times

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A total of 182,666 Malaysians have been banned from international travel by the Inland Revenue Board of Malaysia (LHDN) this year

The travel restrictions are due to income tax arrears.

Deputy Finance Minister Lim Hui Ying told the Dewan Negara that of the total, 171,571 cases involved individuals with income tax arrears, while 11,095 cases involved property profit tax arrears.

"In general, before travel restrictions are enforced, LHDN will take preliminary actions against taxpayers with arrears by sending several reminder letters regarding the outstanding tax payment claims, issuing tax arrears notification emails, and contacting involved taxpayers.

"However, failure to settle tax arrears within the specified period will result in taxpayers facing travel restrictions abroad," she said in response to a question from Senator Datin Ros Suryati Alang.

Image via Bernama

This marks an increase from April last year when a total of 180,216 Malaysians were barred from travelling overseas

Since then, an additional 2,450 Malaysians have been added to the list.

In 2023, 180,216 Malaysians did not pay tax arrears totalling RM7.93 billion, reported The Star.

The travel restrictions were imposed even on those with tax arrears as low as RM100.

According to LHDN spokesperson Ranjeet Kaur, the highest amount owed by an individual in tax arrears was RM1.884 billion, reported FMT.

However, the total number of individuals barred from leaving the country is still less than in 2022, when 197,190 people were barred from travelling abroad, and the total amount of taxes in arrears was RM12.41 billion.

Speaking of which, you must file your income tax returns even if the total tax refund is RM0:

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