Understanding the e-Invoicing Obligation in Donation and Contribution Requirements in Malaysia
As Malaysia accelerates its transition toward a nationwide electronic invoicing system , organisations across sectors are reviewing how the new framework applies to their specific operations—including the handling of donations and contributions. For non-profits, religious bodies, and charitable institutions, this is particularly important to ensure compliance with the evolving regulations under the Income Tax Act 1967 and the LHDN e-Invoice Guideline. One critical area to focus on is the e-invoicing obligation in donation scenarios. In this article, we outline the key e-invoicing obligation in donation and contribution cases, based on the latest guidance issued by the Inland Revenue Board of Malaysia (LHDN). 1. Are e-Invoices Required for Donations or Contributions? Yes, e-Invoices—whether individual or consolidated—must be issued for donations or contributions received, with the following exceptions: Religious institutions or organisations established exclusively for th...