Required certification · Malaysia
LHDN / IRBM (Inland Revenue Board)
Income-tax registration, the MyTax portal and MyInvois e-invoicing
Market position
The federal authority administering direct taxes (Income Tax Act 1967) under the Ministry of Finance — it runs the MyTax gateway and the MyInvois e-invoicing platform.
Malaysia-specific note
A contractor must register for income tax and obtain a TIN via e-Daftar, then issue validated e-invoices through MyInvois — the RM1m–RM5m turnover band is in MyInvois scope from 1 Jan 2026, with full penalty enforcement extended to 1 Jan 2028. See our MyInvois guide for the construction specifics.
Pros
- + Issues the TIN required for all legal/financial dealings
- + MyTax centralises filing and e-Daftar
- + MyInvois enables compliant e-invoicing for B2B/B2G construction billing
- + Employers handle PCB/MTD through LHDN channels
Cons
- − MyInvois is phased by turnover band
- − Non-compliant invoices are penalised RM200–RM20,000 each (s.120(1)(d), ITA 1967)
- − Ongoing monthly PCB/MTD plus annual filing
- − TIN required before most commercial onboarding
Typical Malaysia pricing
Free (TIN registration and MyInvois portal usage).
Why this matters for Malaysia trades
CIDB (the Construction Industry Development Board) registers and grades contractors G1–G7 by project value and issues the mandatory Green Card for site workers under Act 520 — registration is required to undertake or bid construction work; LHDN/IRBM runs income tax, SST and the MyInvois e-invoicing system (XML/JSON with a validated UIN and QR code); SSM (the Companies Commission of Malaysia) handles company incorporation; the Board of Engineers Malaysia (BEM) registers engineers; and employers must register every worker with EPF/KWSP (provident fund), SOCSO/PERKESO (social security) and EIS.
Malaysian construction & trades software selection is shaped above all by MyInvois — the national e-invoicing system run by LHDN/IRBM (the Inland Revenue Board), phasing in by turnover (largest firms since August 2024, mid-market through 2025, businesses above RM1m from January 2026, and the smallest firms following). Construction is treated as a special case: many progress claims and certain transactions must be e-invoiced individually rather than batched into a monthly consolidated e-invoice — so "MyInvois-ready / LHDN-compliant" is the lead selling point for local accounting and construction-ERP vendors. Add the Ringgit (MYR), SST (Sales & Service Tax, not VAT), CIDB G1–G7 contractor grading across ~130,000 registered contractors, and a government digitalisation grant nudging SMEs onto the software. Business runs in English.
Frequently asked
Is LHDN / IRBM (Inland Revenue Board) a good fit for Malaysia trades?
The federal authority administering direct taxes (Income Tax Act 1967) under the Ministry of Finance — it runs the MyTax gateway and the MyInvois e-invoicing platform. A contractor must register for income tax and obtain a TIN via e-Daftar, then issue validated e-invoices through MyInvois — the RM1m–RM5m turnover band is in MyInvois scope from 1 Jan 2026, with full penalty enforcement extended to 1 Jan 2028. See our MyInvois guide for the construction specifics.
What does LHDN / IRBM (Inland Revenue Board) cost in Malaysia?
Free (TIN registration and MyInvois portal usage).. Pricing and availability can change by region — confirm current Malaysia pricing on the vendor's site before committing.