Required certification · Malaysia
LHDN / IRBM (Inland Revenue Board)
Income tax registration, the MyTax portal, employer PCB duties and MyInvois e-invoicing
Market position
The Inland Revenue Board of Malaysia (LHDN, IRBM or HASiL) is the country's direct tax administrator under the Income Tax Act 1967. It runs the MyTax portal, including e-Daftar for tax registration, handles employers' monthly tax deduction (PCB/MTD) rules and runs MyInvois, the national e-invoicing system rolled out in phases by turnover from August 2024.
Malaysia-specific note
A company registers for a Tax Identification Number (TIN) through e-Daftar on MyTax (automatic for companies incorporated through SSM's MyCoID). Businesses with annual turnover up to RM5 million entered e-invoicing on 1 January 2026, but under LHDN's e-Invoice Guideline (version 4.8, 30 August 2026) those below RM3 million are exempt unless a shareholder company, holding company, related company or joint venture has turnover of RM3 million or more. For the up-to-RM5 million phase an interim relaxation runs until 31 December 2027, allowing consolidated e-invoices and no Section 120 prosecution for taxpayers who meet its conditions. See our MyInvois guide for the construction specifics.
Pros
- + TIN registration online through e-Daftar on MyTax
- + Companies incorporated through MyCoID receive a TIN automatically
- + Businesses under RM3 million turnover are exempt from e-invoicing, subject to group rules
- + Interim relaxation until 31 December 2027 for the up-to-RM5 million phase
- + LHDN publishes a list of payroll software whose PCB calculation meets its specification
Cons
- − Group, shareholder and related-company turnover can remove the RM3 million exemption
- − e-Invoice non-compliance can lead to prosecution under Section 120 of the Income Tax Act 1967
- − Employers carry monthly PCB/MTD duties as well as annual filing
- − e-Invoice rules change often (Guideline 4.8 and Specific Guideline 4.9 were issued in August-September 2026)
Typical Malaysia pricing
LHDN's TIN registration page lists no registration fee. Tax, deductions and any penalties follow the Income Tax Act 1967.
Why this matters for Malaysia trades
Under Act 520, every local and foreign contractor must register with CIDB (the Construction Industry Development Board), which grades contractors G1 to G7 with works limits from RM200,000 (G1) to no limit (G7), issues the SPKK certificate for government works and registers construction workers, site supervisors and project managers through the Green Card; working unregistered risks a fine of RM10,000 to RM100,000. LHDN/IRBM runs income tax, employers’ monthly PCB/MTD deductions and the MyInvois e-invoicing system. SSM (the Companies Commission of Malaysia) registers businesses, companies and LLPs; under Act 138 only a Professional Engineer or engineering consultancy practice registered with the Board of Engineers Malaysia (BEM) may submit engineering plans to an authority; and employers must register with and pay monthly contributions to EPF/KWSP and to SOCSO/PERKESO (including EIS), with HRD Corp registration and levy required at 10 or more employees in covered industries.
Malaysian construction and trades software selection is shaped by MyInvois, the national e-invoicing system run by LHDN/IRBM (the Inland Revenue Board), rolled out in phases by turnover from August 2024. Businesses with turnover up to RM5 million entered on 1 January 2026, but under LHDN’s e-Invoice Guideline of 30 August 2026 those below RM3 million are exempt unless a shareholder company, holding company, related company or joint venture has turnover of RM3 million or more, and an interim relaxation for the up-to-RM5 million phase runs to 31 December 2027, allowing consolidated e-invoices for taxpayers who meet its conditions. AutoCount, SQL Account, Bukku and other local accounting and ERP vendors listed here say they submit e-invoices to MyInvois. Add the Ringgit (MYR), SST, CIDB contractor grading from G1 to G7, and monthly EPF, SOCSO, EIS and PCB payroll deductions, with LHDN publishing a list of payroll software whose PCB calculation meets its specification.
Frequently asked
Is LHDN / IRBM (Inland Revenue Board) a good fit for Malaysia trades?
The Inland Revenue Board of Malaysia (LHDN, IRBM or HASiL) is the country's direct tax administrator under the Income Tax Act 1967. It runs the MyTax portal, including e-Daftar for tax registration, handles employers' monthly tax deduction (PCB/MTD) rules and runs MyInvois, the national e-invoicing system rolled out in phases by turnover from August 2024. A company registers for a Tax Identification Number (TIN) through e-Daftar on MyTax (automatic for companies incorporated through SSM's MyCoID). Businesses with annual turnover up to RM5 million entered e-invoicing on 1 January 2026, but under LHDN's e-Invoice Guideline (version 4.8, 30 August 2026) those below RM3 million are exempt unless a shareholder company, holding company, related company or joint venture has turnover of RM3 million or more. For the up-to-RM5 million phase an interim relaxation runs until 31 December 2027, allowing consolidated e-invoices and no Section 120 prosecution for taxpayers who meet its conditions. See our MyInvois guide for the construction specifics.
What does LHDN / IRBM (Inland Revenue Board) cost in Malaysia?
LHDN's TIN registration page lists no registration fee. Tax, deductions and any penalties follow the Income Tax Act 1967. Pricing and availability can change by region; confirm current Malaysia pricing on the vendor's site before committing.