(Tax Update) Understanding Taxpayer Identification Number (TIN) for E-Invoicing in Malaysia

Introduction

As Malaysia embraces the new era of e-invoicing starting from 1st August, understanding the integration and utilization of the Taxpayer Identification Number (TIN) becomes essential for all business entities.

This guide, brought to you by KTP (www.ktp.com.my), aims to simplify the TIN formats for both individuals and businesses, ensuring that our clients are well-prepared and compliant with the upcoming changes.

What is a Taxpayer Identification Number (TIN)?

The Taxpayer Identification Number (TIN) is an alphanumeric code essential for tracking business transactions and ensuring tax compliance in Malaysia. With the shift to e-invoicing, having a TIN will become indispensable for all financial and tax-related activities.

TIN Formats in Malaysia

For Individuals:

Current Format: Post-2nd January 2023, the TIN for individuals starts with "IG" followed by a 9-11 digit unique identifier.

Previous Format: Before this date, it began with "OG" or "SG."

Example: IG845462070, IG57303584070

For Companies and Other Entities:

Format Overview: Begins with a prefix that denotes the entity type, followed by a 10 or 11-digit number. An extra "0" has been included after the TIN number for non-individual entities since 2nd January 2023 to standardize the format.

Entity Prefixes:

Companies: C
Cooperative Societies: CS
Partnerships: D
Employers: E
Associations: F

Examples: Company: C20830570210 Cooperative Societies: CS1234567890

How to Apply for a TIN in Malaysia

For new taxpayers, obtaining a TIN involves visiting the official tax authority's website or office, providing necessary documentation, and submitting an application form. This process ensures that all your business dealings are recorded and taxed appropriately.

Finding Your Existing TIN

Existing taxpayers can locate their TIN by checking previous tax returns, accessing the tax authority's online portal, or contacting the tax authority directly for assistance.

Importance of TIN in the E-Invoicing System

The integration of TIN into the e-invoicing system ensures as TIN is one of compulsory fields under E-Invoicing system

Compliance: Streamlines tax compliance and simplifies audits.
Accuracy: Enhances the accuracy of financial transactions.
Security: Minimizes the risk of errors and fraud.

Conclusion:

As Malaysia progresses towards a more digitalized economy, understanding and applying the correct TIN format is crucial for seamless business operations.

KTP is committed to assisting our clients through these transitions, ensuring that your business remains compliant and efficient in handling all tax-related matters. For more insights and support on e-invoicing in Malaysia, visit us at www.ktp.com.my or contact our support team for personalized assistance.

PS : E-invoice Update @ 25/7/2024

e-Invoice Guideline Update: The IRBM has released version 3.1 of their e-Invoice Guidelines on July 19, 2024. The updates include two changes in Appendix 2: Incoterms related to import/export are now an optional field instead of mandatory, and adjustments to the Product Tariff Code.
Business Registration Number (BRN): The IRBM has announced a temporary validation concession for the BRN, disabling its validation process until further notice. However, this change has not affected the e-Invoice Report, as the disablement is only temporary.

Visit Us

Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients