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Established in 1996, LHDN (Lembaga Hasil Dalam Negeri), also known as the Inland Revenue Board of Malaysia, has been at the forefront of managing Malaysia’s tax system for over two decades. Its creation was the result of the Malaysian government’s efforts to streamline tax administration and enhance tax compliance among individuals and businesses.
During its early years, LHDN faced numerous challenges as it worked towards establishing itself as the country’s primary tax authority. The organization had to develop robust systems and processes to effectively collect and manage tax revenues. This involved setting up regional tax offices across the country, hiring and training a skilled workforce, and implementing advanced technology solutions to support its operations.
As Malaysia’s economy grew and evolved, so did the responsibilities of LHDN. The organization had to adapt to the changing needs of the nation and respond to new tax policies and regulations. Over the years, LHDN has undergone several strategic transformations to enhance its capabilities and ensure efficient tax administration.
One significant milestone in LHDN’s history was the introduction of the self-assessment system in 2001. This system shifted the responsibility of tax assessment from the tax authorities to the taxpayers themselves. It aimed to simplify the tax filing process and encourage voluntary compliance. LHDN played a crucial role in educating taxpayers about the new system and providing them with the necessary guidance and support.
In recent years, LHDN has also embraced digitalization to improve its services and enhance taxpayer experience. The organization has launched online platforms and mobile applications, allowing taxpayers to file their tax returns, make payments, and access relevant information conveniently. These digital initiatives have not only made tax compliance more accessible but also helped LHDN to streamline its operations and reduce administrative burdens.
LHDN regularly publishes tax guides and other informative materials to educate taxpayers on their rights and obligations. These publications provide valuable insights into various tax matters, helping individuals and businesses navigate the complexities of the tax system. Additionally, LHDN conducts workshops and training sessions to foster tax awareness and compliance.