Taxes are a cornerstone of economic development, providing the resources to fund essential public services such as education, healthcare and infrastructure — directly contributing to economic growth.

However, tax management can be time-consuming and overwhelming for many businesses and individuals.

To alleviate this, the Inland Revenue Board of Malaysia (HASiL) has taken a significant step towards modernising the nation’s tax system through MyTax and e-Invoice — digital tools aimed at making tax filing easier.

These tools aim to enhance efficiency, accuracy and accessibility in tax compliance for individuals and businesses alike, aligning with Malaysia’s commitment to digital transformation, as outlined in the 12th Malaysia Plan, which emphasises the modernisation of tax systems by strengthening the overall tax administration.

Launched during the height of the Covid-19 pandemic in December 2020, MyTax is designed to be a one-stop digital portal for all tax-related services to reduce in-person interactions and transition services online, ensuring continued access to tax services while adhering to social distancing protocols.

The platform consolidates essential tax functions into an integrated system, providing taxpayers easy access to e-Filing, e-Billing and a personalised dashboard.

Through e-Filing, individuals and businesses can submit their Income Tax Return Forms (ITRF) electronically, speeding up submissions and reducing errors associated with manual paperwork.

For those who need to register for a Tax Identification Number (TIN), MyTax’s e-Daftar feature ensures a streamlined, online registration process, which becomes mandatory for all taxpayers starting in 2024.

The platform also simplifies payment processes through its e-Billing and ByrHASiL systems, allowing taxpayers to generate bill numbers and make payments digitally without delays.

Meanwhile, e-Kemaskini allows users to update their personal information online, such as bank account details, contact numbers and addresses. This ensures that taxpayers’ records remain accurate, reducing delays in processing refunds, payments and official communications while eliminating the need for physical visits to HASiL offices.

These functionalities are further enhanced by a user-friendly dashboard, where taxpayers can track their payment history and tax status and receive timely notifications. The dashboard also enables users to monitor refund progress, access historical tax submissions for easy reference and receive automated reminders for upcoming filing deadlines, ensuring timely compliance and reducing the risk of penalties.

HASiL had mandated the use of online services through the MyTax portal in stages starting Sept 1, 2023, in line with the government’s push to completely digitalise its tax administration. The use of MyTax was subsequently made mandatory on Jan 1, 2024.

By integrating these services, MyTax provides taxpayers with an accessible and efficient way to manage their obligations.

Complementing the MyTax platform is the introduction of e-Invoice, which will be implemented in phases, based on annual turnover — businesses with a yearly turnover of more than RM100 million must adopt e-Invoice starting Aug 1, 2024.

Those with a turnover between RM25 million and RM100 million will transition by Jan 1, 2025, while all other taxpayers will follow by July 1, 2025.

Digital invoicing eliminates the need for paper documents, saving time and cutting costs associated with manual processes.

This transition is particularly beneficial for micro, small and medium enterprises (MSMEs) as it offers a gradual and manageable approach to digitising according to industry standards, helping them adapt to evolving requirements while ensuring minimal disruption to their operations.

Businesses can generate and submit invoices in real time, allowing HASiL to verify and approve transactions seamlessly.

To facilitate this, e-Invoice can be transmitted through the MyInvois Portal or the Application Programming Interface (API).

The MyInvois Portal allows individual or batch generation of e-Invoices, making it ideal for businesses without advanced systems.

On the other hand, the API enables high-volume transactions through integration with existing Enterprise Resource Planning (ERP) systems or third-party providers, which is suited for larger businesses handling substantial transaction volumes.

This real-time validation supports various transaction types, including Business-to-Business (B2B), Business-to-Consumer (B2C) and Business-to-Government (B2G) transactions, ensuring smooth and efficient processing across all sectors.

Digital tools enable businesses to improve operational efficiency, as automated invoicing streamlines financial reporting processes.

The shift to e-Invoice also fosters transparency, as real-time submissions make it easier for both businesses and tax authorities to track and verify transactions.

Scenarios requiring e-Invoices include proof of income, issued when a sale or transaction is made to recognise taxable income, and proof of expense, which covers purchases, returns or corrections in income receipts.

These ensure accurate documentation and compliance for both local and foreign transactions, such as self-billed e-Invoices for foreign supplier services.

HASiL recognises the challenges of transitioning to digital tools, particularly for businesses unfamiliar with such systems, and has implemented various support initiatives to ensure a smooth and successful rollout.

Online resources and tutorials are available to assist businesses and individuals in navigating these digital tools effectively. Dedicated helplines and support teams are also available to guide the transition, and awareness campaigns aim to educate taxpayers on the benefits of adopting digital compliance tools.

By embracing digital solutions, Malaysia creates a future-ready tax ecosystem supporting economic growth, sustainability and innovation.

As the nation moves towards a fully digital tax system, individuals and businesses are encouraged to explore the MyTax portal and adopt e-Invoice for seamless compliance.

The transformation ensures greater accuracy and efficiency and contributes to the nation’s long-term economic success.

Visit mytax.hasil.gov.my today and take the first step towards a smarter, more efficient tax future.

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