IRBM Publishes January 2025 Updates to E-Invoice Guidelines
Malaysia’s Inland Revenue Board has released January 2025 updates to e-invoice guidelines, introducing new exemptions and revised rules for self-billed transactions, consolidation, and interest payments.
The Inland Revenue Board of Malaysia (IRBM) has released further revisions to Malaysia’s e-invoicing framework, introducing new exemptions and updated rules for self-billed transactions.
On 28 January 2025, IRBM published:
- E-Invoice Guideline Version 4.1
- E-Invoice Specific Guideline Version 4.0
These updates focus on self-billing requirements, consolidation rules, and additional exemptions.
Key Updates in Guideline Version 4.1
Guideline v4.1 introduces an expanded list of international organizations that are exempt from issuing e-invoices, including self-billed e-invoices.
Updates to Self-Billing Rules in Specific Guideline Version 4.0
Consolidation of Self-Billed Transactions
As a general rule, consolidation does not apply to self-billed e-invoices. However, the updated guidelines allow consolidation in limited scenarios:
- Claims, compensation, or benefit payments by insurance companies to:
- Individuals not conducting a business
- Government entities
- State authorities
- Self-billing transactions involving a taxpayer’s overseas branches or offices
New Transactions Requiring Self-Billed E-Invoices
Buyers are now required to issue self-billed e-invoices for payments related to:
- Capital reduction
- Share, capital, or unit redemption
- Share buybacks
- Return of capital
- Liquidation proceeds
Exceptions to Self-Billed Invoice Issuance
While self-billed e-invoices are generally required for interest payments, the guidelines confirm several exceptions.
Existing exceptions include:
- Interest charged by businesses, such as financial institutions, to the public
- Interest payments made by employees to employers
- Interest paid by foreign payors to Malaysian taxpayers
Additional exceptions introduced in this update include:
- Interest paid to a related Malaysian-incorporated company providing centralized treasury services to its affiliates. Mandatory from 1 July 2025
- Late payment interest or charges imposed by Malaysian taxpayers
These clarifications provide greater certainty on when self-billing is required and how consolidation may be applied under Malaysia’s evolving e-invoicing framework.
