Malaysia: Inland Revenue Board announced investigation into businesses operating on electronic commerce platforms for non-compliance with tax payments under Income Tax Act

On 4 March 2025, the Inland Revenue Board (HASiL) announced an investigation into businesses operating on e-commerce platforms that had issued approximately 4 million e-Invoices but were found to have no record of income tax return submissions or estimated tax instalment payments, as required under the Income Tax Act 1967. HASiL announced that 66,000 businesses on e-commerce platforms had been identified as non-compliant with tax payment and reporting obligations. HASiL urged affected businesses to update their tax records to avoid enforcement action, highlighting that e-Invoicing, monitored through the MyInvois system, ensures continuous tax compliance. It was also highlighted that full e-Invoicing compliance is mandatory from 1 February 2025.