What is a TIN? Understanding Tax Identification Numbers for Malaysia’s E-Invoicing
Every business and every taxpayer needs an identity, a number that ties all their financial transactions and financial accounts into one central record. In Malaysia, that identity is the Tax Identification Number (TIN), also known in practice as your income tax number or the identifier used by the Inland Revenue Board (LHDN / HASiL) to track you. As Malaysia transitions into e-invoice with MyInvois, understanding your TIN is no longer optional, but it’s critical for smooth business operations.
In this article, we will walk step by step: what a TIN is, why it matters, how it ties into registration for business, business income, tax obligations, and how your e-invoicing setup must use it properly. We’ll also weave in Malaysia’s rules under the Income Tax Act, the role of monthly tax deductions, tax treaties, international tax cooperation on financial accounts abroad, and how all this links to government incentives and reliefs.
Tax Identification Numbers (TIN Malaysia): More Than Just a Number
A Tax Identification Number (TIN) is a unique identifier issued by the Inland Revenue Board of Malaysia (LHDN / HASiL) to record and monitor taxpayers. It is the anchor for your tax file, linking income, deductions, and compliance records to your identity.
– For individuals (residents): Your NRIC (National Registration Identity Card / MyKad) is often used as your income tax number, and under e-invoicing, TIN codes for individuals begin with the prefix “IG”. This is also tied to your individual income tax return for income tax purposes.
– For non-individuals (companies, partnerships, limited liability partnerships (LLPs)): A unique TIN is assigned based on the business entity’s registration form and corporate details, company incorporation number. In the e-invoice system, these TIN codes must end with “0” for validation.
Why emphasize TIN so often? Because when MyInvois checks invoices, it validates against LHDN’s records. If your TIN code is incorrect or unrecognized, your e-invoice may be rejected or flagged, , making it harder to ensure compliance.
Role of LHDN, Income Tax Act, and Compliance
Inland Revenue Board of Malaysia (IRBM / LHDN / HASiL) is the government agency responsible for issuing and managing TINs. They also collect direct taxes, enforcing compliance, and interpreting tax laws.
Under the Income Tax Act 1967 (including later amendments), all individuals and businesses are required to pay taxes, submit tax returns, and meet their tax responsibilities. They do so using their TIN. The TIN is the anchor that binds:
– Income tax filings (personal and business income)
– Assessments, audits, and investigations
– Monthly tax deductions (MTD / PCB) for employees
– Claims for tax reliefs, incentives, and government grants
– Cross-border tax cooperation, , communication and information exchange, and treaty claims
Without a valid Tax Identification Number (TIN), you can’t properly file; you risk unregistered income being assessed at higher rates or penalties for noncompliance. For businesses, the TIN is essential not only for income tax, but it also links to indirect taxes (sales tax, service tax) when those apply.
Business Registration Process, Certificates, and TINs
There are 2 separate identifiers:-
i. Business Registration Number (BRN), issued by the Companies Commission of Malaysia (SSM)
ii. Tax Identification Number (TIN), issued by the Inland Revenue Board of Malaysia (LHDN)
The SSM BRN establishes a company’s legal existence and identity under the Companies Act. This BRN, however, is not the TIN; instead, it provides the essential legal data that LHDN uses to automatically issue or match the unique TIN.
The TIN is a distinct alphanumeric code (e.g., prefixed with ‘C’ for companies) used exclusively for tax administration, filing, and, crucially, for the mandatory validation of e-invoices. This helps identify Malaysian taxpayers as well as foreign companies and Malaysia citizens engaged in reportable activities.
Why TIN Matters in Malaysia’s E-Invoicing (MyInvois) Rollout
E-invoicing is not just converting paper to digital; it’s about integrating invoices into the tax authority’s system in real time. That’s where the TIN becomes a linchpin. Here’s how TINs are used in e-invoice system:
1. Validation During Invoice Submission
MyInvois uses the TIN as the primary key for near real-time validation. The system checks that both the supplier’s and buyer’s TINs are valid and match official LHDN records before clearing the e-invoice. This mechanism immediately reduces fraud by preventing ghost suppliers and rejecting transactions based on invalid taxpayer identities.
2. Data Reconciliation & Compliance
The TIN ensures accurate data reconciliation. It acts as the central link allowing LHDN to automatically match the sales reported in e-invoices against the income declared in tax returns, payments recorded via Monthly Tax Deductions (MTD), and even bank records. This enhances compliance reporting and simplifies audits for businesses.
3. International Cooperation
Clear taxpayer identification via the TIN is essential for Malaysia’s participation in international tax cooperation. It facilitates the cross-border exchange of information, ensuring treaty relief is properly granted and aiding global efforts to combat tax evasion and prevent double taxation for multinational businesses.
General TIN Codes and Their Use
In some cases, businesses issue invoices to parties without a Malaysian TIN. For these scenarios, the Inland Revenue Board provides general TIN codes, such as:
i. EI00000000010 – For foreign individuals
ii. EI00000000020 – For foreign entities
iii. EI00000000030 – For non-Malaysian government bodies
iv. EI00000000040 – For transactions with unknown or exempt parties
For a complete breakdown, read General TIN / Tax Identification Number codes for e-Invoicing in Malaysia to help you gain a better understanding.
How to Get, Confirm, and Retrieve Your Tax Identification Number (TIN) in Malaysia
Let’s walk through what a business or individual in Malaysia should do to make sure their Tax Identification Number (TIN) is ready for e-invoicing and tax compliance.
1. Automatic Registration
LHDN automatically issues TINs in many cases: employees with Monthly Tax Deductions (MTD), newly incorporated companies linked via SSM/MyCoID, and other groups may receive a TIN without a separate application. (If you’re unsure whether a TIN exists for your entity, check MyTax.)
2. MyTax / e-Daftar / MyInvois Portals
MyTax portal provides a TIN search and e-registration functions. For companies, you can search using your business registration number (BRN) or SSM number; individuals can use NRIC or passport number. Use the portal to confirm the TIN you’ll supply on e-invoices.
3. In Person / Via Contact Centre
If online lookup fails, HASiL Careline and branch counters can confirm or issue TIN details after verification.
Tips for businesses: Record your business registration certificate, partnership registration certificate, or limited liability partnership documents next to your TIN record. Your accounting system and MyInvois user profile should mirror the exact name and number shown to prevent validation mismatches.
Practical Guide: Issuing E-Invoices with Tax Identification Number (TIN) via MyInvois
Here we will discuss what your business actually does when issuing e-invoices, especially in relation to TINs.
1. Login / Role Setup
– Log in to your MyTax / MyInvois environment via your authenticated credentials.
– Apply for the correct user role (administrator, company representative, financier) so you can issue invoices.
– Access the MyInvois portal (or sandbox/testing environment) to practise before going live.
2. Set Taxpayer Profile
– In MyInvois profile, confirm your TIN, the number of your registered business, legal name, address, and other registration details.
– If any of these mismatch, you must correct them before issuing invoices.
3. Issue e-invoice
– When a sale or transaction happens, fill the invoice form (or upload batch), including mandatory fields like supplier TIN, buyer TIN, item descriptions, amounts, tax fields.
– Submit the invoice to IRBM via MyInvois or API for validation.
4. Validation & Notification
– The system validates the invoice in near real time. It checks whether the TINs, amounts, and formats comply.
– If valid, a Unique Identifier Number is assigned and both supplier and buyer are notified.
– If rejected, reasons are given; you must correct and resubmit.
5. Sharing & Archiving
– After validation, you share the validated e-invoice (often with an embedded QR code) with the buyer.
– The invoice is stored in IRBM’s system. You and the buyer can retrieve metadata or full invoice records from MyInvois.
6. Rejection / Cancellation Window
– Within a specified period (often 72 hours), a buyer may request rejection or a supplier may cancel due to errors.
– After that window, corrections require issuing credit notes/debit notes with proper linkage.
7. Use Invoice Data for Tax Reporting
– Once invoices are validated, the data ties into your tax returns (income tax, indirect taxes) linked via your TIN.
– Payment tracking, reconciliation, audit trails all improve when invoices are tied to a consistent TIN.
Conclusion
As Malaysia moves steadily into mandatory e-invoicing, a valid, verified, and correct TIN is very crucial. Your TIN ties together with your business, your income tax filings, your monthly tax deductions, government incentives, and compliance under Malaysia’s tax system.
If you haven’t confirmed your TIN, do it now. Use MyTax, visit LHDN, cross-check your business documents, and practise issuing e-invoices using the sandbox ahead of your mandated phase. Correct use of TIN ensures smoother audits, proper allocation for registered taxpayers, and stronger compliance outcomes.
Frequently Asked Questions (FAQ)
Is the business registration number the same as the TIN?
Not exactly. The business registration number (from SSM or equivalent) is your legal corporate identifier. The Tax Identification Numbers (TIN) is the tax authority’s identifier. They are often linked, but must match in format and name for e-invoicing and tax purposes.
Do individuals need a TIN for e-invoices?
Usually, individuals (if issuing invoiceable services) use their NRIC / MyKad (or passport if non-Malaysian) as their Tax Identification Numbers (TIN). But e-invoicing tends to target business transactions, so most users will be business entities.
What if my partner or supplier is from overseas?
Use the foreign entity’s tax ID (or registration/passport number) in the TIN field where applicable. In some cases, buyers may need to issue self-billed e-invoices when suppliers don’t use MyInvois.
How does TIN help with tax reliefs, incentives, government grants?
Because all your invoices, deductions, grants, and claims are tied to your TIN, the tax authority can properly allocate tax deductions, monitor government subsidies, and ensure correct tax benefits under Malaysia’s tax laws. Without a consistent TIN, your claims may be rejected or audited.
What happens if an invoice with wrong TIN gets accepted?
That’s risky. During audits, the mismatch could lead to disallowance, penalties under the Income Tax Act, or forced adjustments. Always correct and re-submit.
Alfred Ang
Alfred has led the company in helping over 500 SMEs successfully transition to digital platforms. With expertise in cloud accounting software implementation and other tech stacks. Alfred empowers businesses to access real-time, accurate financial data for informed decision-making. As a Chartered Accountant (CGMA, ACMA, and MIA member), he is driven by the mission to streamline traditional accounting processes. Alfred’s accomplishments include winning the Xero Award for Medium Accounting Partner of the Year in 2024.