PETALING JAYA, Aug 19 (Bernama) -- KPMG in Malaysia commends the Inland Revenue Board of Malaysia (HASiL) for its proactive measure in encouraging fair and sustained tax compliance, in line with the national tax enforcement initiatives.
“Early interventions, including targeting taxpayers who are at risk of under-reporting income, are helping to close the compliance gap. For instance, 5,800 taxpayers previously flagged for non-submission have since come forward, contributing RM82 million in additional tax revenue
[1],” said
Soh Lian Seng, Head of Tax at KPMG in Malaysia.
Beyond revenue, these measures also aim to strengthen the integrity of the tax system, ensuring that compliance is fair and transparent for the
rakyat. Additionally, Soh observed that HASiL has made significant strides in its digitalization efforts, introducing enhanced e-Services intended to address taxpayers’ pain points, facilitate their obligations, and support more efficient business operations.
KPMG and CTIM surveyed 198 organizations (including both large corporations and SMEs) from 1 to 19 July 2025, and the result was unveiled at the 25th National Tax Conference 2025. The session was moderated by Soh, who also serves as President of the Chartered Tax Institute of Malaysia.
Key findings from the KPMG and CTIM survey cover various HASiL service areas:
· Audit and enforcement: Over 80% of respondents expressed satisfaction with HASiL’s audit and investigation performance, but some expressed concerns regarding consistency and proportionality in specific cases.
· Compliance matters and awareness: A total of 88% of respondents were well-aware of HASiL’s public rulings and guidelines. However, there was a notable demand to call for more practical, timely, and comprehensive guidance to support confident tax treatment decisions.
· Digital services: The majority of businesses have utilized at least one of HASiL’s e-Services including e-PCB Plus, e-Ansuran, the Malaysian Income Tax Reporting System (MITRS), e-Sekatan Perjalanan, e-Janji Temu, and HASiL Live Chat. More than 50% of these users rated the platforms as good or perfect. Respondents also highlighted the area of improvements, specifically on system stability, user experience, customer support and accessibility.
Soh highlighted that,
“The results of this KPMG and CTIM survey provide significant insights for Malaysia’s wider tax reform initiatives, extending beyond the assessment of tax compliance to the enhancement of systems that promote equity and transparency for the
rakyat. Effective tax administration relies on cultivating public trust, which is best supported by objective, fact-based evaluations of individual cases, complemented by clear and prompt communication. Where substantial disputes arise, expanding opportunities for early engagement can further strengthen taxpayer confidence and reinforce HASiL's commitment to a fair and transparent system.”
“Furthermore, taxation is fundamental to national development, underpinning the provision of essential services, infrastructure, and programs that enhance the quality of life for Malaysians. As the nation prepares for the 13th Malaysia Plan (13MP) 2026–2030, with its focus on good governance and economic resilience, optimizing tax administration and advancing digital services will be critical to building trust in the tax system and supporting Malaysia’s long-term competitiveness,” added Soh.