The Malaysian Digital Economy Corporation (MDEC), Malaysia’s leading digital economy agency, signed a memorandum of understanding (MoU) with the Malaysian Inland Revenue Board (HASiL) to establish strategic cooperation for the implementation of the National eInvoicing Initiative (National e-Invoicing Initiative).
HASiL was represented by its Chief Executive Officer and MDEC was represented by its Chief Executive Officer. It was witnessed by the Chief Secretary of the Treasury and the Divisional Secretary, Communications Technology Division of the Ministry of Communications and Multimedia (K-KOMM).
Through this MoU, MDEC and HASiL will work together in coordinating the implementation of the National e-Invoicing Initiative with the tax compliance model across the country as well as sharing the implementation status and framework regarding planning, strategy, and development in relation to the implementation of the initiative.
The National e-Invoicing Initiative led by MDEC with the support of the Ministry of Communications and Multimedia (K-KOMM), is an initiative to drive the country’s digitization agenda in line with the Malaysian Digital Economy Action Plan (MyDIGITAL) and it is also one of the programs under the Strategic Roadmap E-Commerce (NESR) 2.0. Along with the rapid development of digitalisation, businesses need an easier way to exchange information and trade transactions globally.
MDEC’s Chief Executive Officer noted that the initiative is also one of the Malaysia Digital Catalyst Program (PEMANGKIN) under the Digital Trade sector, which aims to accelerate the growth of the country’s digital economy by supporting the harmonisation of standards and regulatory approaches to facilitate local and cross-border trade.
He said that MDEC will work with HASiL in the implementation of the National e-Invoicing Initiative considering the taxation requirements for the development of the e-invoicing framework that will be implemented in Malaysia as well as promoting the importance and advantages of e-invoicing to businesses.
The National e-Invoicing initiative is part of a more comprehensive digitisation agenda for business documents, starting with e-invoices, and will later include other business documents such as deliveries, catalogues, and orders. This is aligned with the global trend – various countries have implemented interoperable e-invoices, and later the implementation was expanded to include other business documents.
MDEC will continue to commit to identifying high-potential sectors, in line with the new national strategic initiative, Malaysia Digital (MD) where the Digital Trade sector will continue to be driven through better interoperability and coordination in terms of standards and regulatory approaches as well as facilitating local trade across borders.
Meanwhile, the CEO of HASiL stated that the collaboration is in line with the aspirations of the Twelfth Malaysia Plan 2021-2025 (12th RMK) which focuses on the agenda of strengthening digital service infrastructure and further towards the digitization of tax administration.
In the context of taxation, studies at the international level show that the implementation of e-invoicing is not only able to improve tax collection and the quality of services offered by tax administrators, but it also provides many benefits to taxpayers in terms of improving the efficiency of business operations, simplify record keeping and reduce their tax compliance costs.
He added that the implementation of e-invoicing can also create more transparent business transactions thus helping the government overcome the problem of the shadow economy in transactions. In relation, the collaboration between MDEC and HASiL is especially important in improving the sustainability of the national taxation system and further being trusted by the people.
MDEC is closely working across a variety of agencies, ministries and fields to make Malaysia a more attractive investment destination as well as more inviting to international expertise. The recent De Rantau initiative provides digital nomads with more destination options to travel while working in Malaysia and will contribute to the income of local communities and accelerate the growth of the nation’s digital economy.
