What are the e-Invoice Treatments for Directors’ Fees?

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The e-Invoicing Guidelines in Malaysia are a comprehensive framework designed to modernise and streamline the invoicing process across various transactions, enhancing efficiency and tax compliance.

The guidelines cover myriad transactions and touch upon the specific income types exempted from the e-invoicing system.

For directors who have entered into a contract for services with a company, issuing an e-invoice for any income received is mandatory, reflecting the transaction’s commercial nature.

Conversely, directors’ fees from a service contract viewed as employment income are currently exempt from the e-invoicing requirement.

This distinction underscores the importance of understanding the nature of the contractual relationship and the corresponding e-invoicing obligations.

Taxpayers, especially those in directorial positions, are advised to stay informed about their e-invoicing responsibilities and any potential changes to exemptions, as guidelines are subject to periodic reviews and updates by the relevant authorities.








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