The IRB recently released the updated e-invoicing guidelines, specific guidelines and FAQ on 28 January 2025. The following are the key changes:
- Consolidation of self-billed e-invoice is expanded to include the following:
a) claim, compensation or benefit payments from the insurance business of an insurer to individuals (who are not conducting a business), government, government authority, state government or state authority.
b) self-billed circumstances involving taxpayers’ overseas branches or offices. - Self-billed e-invoice on interest payments do not apply to the following new categories:
a) Interest payment to a related company (as defined in the Income Tax Act 1967) incorporated in Malaysia who provides centralised treasury services to its related companies
b) Late payment interest or charges imposed by Malaysian taxpayers - Self-billed e-invoice expanded to include payment in relation to capital reduction, share / capital / unit redemption, share buyback, return of capital or liquidation proceeds. The applicable timing of issuance is depending whether there is a written agreement or not.
- The IRB provided a new Appendix in the E-Invoicing General Guidelines with respect to international organisation not subject to e-invoicing requirements.
The following are further clarified via the updated FAQ:
- Special purpose vehicle is required to implement e-invoice and is also required to obtain its own tax identification number.
- Malaysian buyers are not required to include the duties and / or taxes levied by RMCD in the self-billed e-invoice.
Please refer to this link for our previous updates on e-invoicing. The following is also a summary on e-invoicing.
