Chapter 16: Foreign source income

1.0 Introduction

With effect from 1.1.2022, foreign source income received in Malaysia from outside Malaysia would be taxed with the exception of resident individual. Company and LLP are required to issue e-Invoice on the income received in Malaysia within 1 month following the month of receipt of the said foreign source income.

2.0 e-Invoice segregation

The income recipient would be known as ‘supplier’, having the mandatory duty to issue e-Invoice to account on the foreign source income received in Malaysia. The person making the payment of this foreign income is known as the ‘buyer’.

2.1 Buyer’s information

The name of the buyer, its businesses, business address and contact number would be required for the e-Invoice, the TIN number to be used for foreigner would be EI00000000020.

3.0 Currency

The foreign currency and the currency rate required to be included in the e-Invoice, the currency exchange rate would be the date the sum credited into the bank accounts.

4.0 Timeline

The supplier is required to issue the e-Invoice latest by the end of the month following the month of receipt of the said foreign source income. The said e-Invoice would be sent to validation by IRB, the validated e-Invoice would be accepted and approved by the same supplier.

Get in touch:

📧 einvoice.smcm@gmail.com 

📞 603 – 7733 6770

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