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Tag: Inland Revenue Board of Malaysia

e-Invoice strengthens tax compliance: 52,540 taxpayers come forward to report income of RM4.07 billion

PUTRAJAYA, JUNE 20 -- The implementation of e-Invoice has successfully strengthened tax compliance with 52,540 taxpayers reporting a total income of RM4.07 billion, according to the Inland Revenue Board of Malaysia (IRB). The IRB in a statement today informed that since the implementation of e-Invoices began on 1 August 2024, more than 230,000 taxpayers have submitted e-Invoices, which involves the issuance of 1.505 billion e-Invoices in total. "This development demonstrates the support and willingness of taxpayers to strengthen digitalization in business operations," the statement said. In line with the principle of transparency in the country's taxation system, the IRB has informed all taxpayers that they must issue e-Invoices for every transaction involving the sale of goods or provision of services exceeding RM10,000 starting 1 Jan 2026. For this purpose, the buyer needs to submit their personal identification number or tax identification number (TIN) information to the seller, to enable the e-Invoice to be issued accurately. According to a statement by the IRB, it has developed an analytical model to identify anomalies, suspicious transactions and unusual behavior patterns for enforcement purposes. "This initiative has proven effective where the IRB has successfully implemented more effective risk assessments, thus increasing the level of voluntary tax compliance and contributing to increased national revenue collection," the statement said. Based on the analysis, the IRB detected taxpayers who showed a pattern of active financial transactions but did not match existing tax records, including high-value purchase transactions exceeding RM100,000, vehicle and asset purchases, as well as active online transaction activities without proper income reporting records. IRB remains committed to intensifying the "nudging" approach and compliance based on e-Invoice data to increase awareness and provide taxpayers with the opportunity to make corrections and submit tax information voluntarily before any further action is taken. "Through this approach, a total of 52,540 taxpayers have come forward to submit Income Tax Return Forms (BNCP) for income from previous assessment years, with a total income of RM4.07 billion and tax payable amounting to RM1.009 billion," according to a statement from the IRB. The IRB informed that the results of continuous monitoring carried out found that there are still taxpayers who do not comply with the requirements for implementing e-Invoices as stipulated. Among the mistakes made by taxpayers identified is the inconsistent issuance of e-Invoices, including situations where e-Invoices are only issued for some transactions and fail to issue e-Invoices for subsequent transactions. Other mistakes made were sending consolidated e-Invoices after the allowed time period and failure to issue e-Invoices for sales transactions of goods or provision of services exceeding RM10,000 starting 1 Jan 2026. In this regard, the IRB advises all taxpayers to ensure that the issuance of e-Invoices is fully implemented in accordance with the regulations in force. For taxpayers who have not yet issued e-Invoices for previous transactions, voluntary corrective actions must be implemented immediately. "Enforcement and legal action will be taken to ensure a high level of compliance and to guarantee that fairness in the country's taxation system is always maintained," the statement said. -- BERNAMA

PUTRAJAYA, JUNE 20 — The implementation of e-Invoice has successfully strengthened tax compliance with 52,540 taxpayers reporting a total income of RM4.07 billion, according to the Inland Revenue Board of Malaysia (IRB). The IRB in a statement today informed that since the implementation of e-Invoices began on 1 August 2024, more than 230,000 taxpayers have […]

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