What are the penalties for failing to comply with Malaysia’s e-Invoicing requirements?

Failure to comply with applicable e-Invoicing requirements may constitute an offence under Malaysian tax legislation. Section 120(1)(d) of the Income Tax Act 1967 addresses failures to comply with prescribed e-Invoice requirements. The statutory penalty may include a fine of RM200 to RM20,000, imprisonment for up to six months, or both, subject to the provision and circumstances that apply.

Businesses should check the current legislation and LHDN/HASiL enforcement guidance before relying on a penalty summary. Transitional relaxation arrangements may affect enforcement for eligible taxpayers and specified requirements, but they should not be treated as a blanket exemption from every tax obligation or offence.

Key points

• Section 120(1)(d) of the Income Tax Act 1967 is relevant to e-Invoice non-compliance.
• The statutory penalty may be a fine of RM200 to RM20,000, imprisonment for up to six months, or both.
• The applicable outcome depends on the facts and relevant legal provisions.
• Check current official enforcement guidance and any applicable relaxation arrangements.
• Seek qualified tax advice for a specific compliance or enforcement concern.