As Malaysia’s e-Invoicing implementation continues, one question keeps coming up among business owners:
“My landlord doesn’t issue e-Invoices. Does that mean I can’t claim my rental expense?”
The good news is not necessarily.
The answer depends on whether your landlord is required to implement e-Invoicing.
When Your Landlord Is Not Required to Issue e-Invoices
Not every landlord is currently under the e-Invoicing regime.
For example, your landlord may be:
- An individual who has not reached the mandatory implementation phase.
- A business that is not yet required to issue e-Invoices.
- A person who falls under an exemption or later implementation timeline.
In these situations, your landlord cannot issue an e-Invoice, and that’s perfectly acceptable.
In this case, tenants may issue a self billed e-invoice to support the rental expense.
What Documents Should You Keep?
If you are issuing a self-billed e-invoice, you should maintain proper supporting documents such as:
- A signed tenancy agreement or rental contract.
- Proof of rental payment (bank transfer, online banking records or receipts).
- Any other supporting correspondence relating to the tenancy.
These documents continue to support your rental expense for income tax purposes, subject to the applicable tax rules.
What If Your Landlord Is Already Required to Implement e-Invoicing?
If your landlord falls within the mandatory e-Invoicing implementation group, they should issue an e-Invoice for the rental they charge.
In this situation, you should request the e-Invoice from your landlord and retain it together with your payment records.
Example
Imagine ABC Sdn. Bhd. rents an office for RM5,000 per month.
The landlord is an individual who is not yet required to implement e-Invoicing.
ABC Sdn. Bhd. can still support its rental expense by issuing a self-billed e-invoice and maintaining the documents below:-
- The signed tenancy agreement.
- Monthly bank transfer records.
- Other relevant supporting documents.
Common Misconception
Many businesses believe:
“No e-Invoice means I cannot claim the expense.”
This is incorrect.
The absence of an e-Invoice does not automatically make the expense non-deductible. What matters is whether the supplier was required to issue one and whether sufficient supporting documentation is maintained. Tenants may issue a self-billed e-invoice for tax purposes.
Key Takeaway
Before worrying about missing e-Invoices, first determine whether your landlord is actually required to issue them.
If they are not, issue a self-billed e-invoice, keep your tenancy agreement and proof of payment properly filed.
If they are required to implement e-Invoicing, request the e-Invoice accordingly.
Understanding this distinction can help businesses stay compliant while avoiding unnecessary confusion during Malaysia’s e-Invoicing transition.
Need help understanding Malaysia’s e-Invoicing requirements?
The team at AdrianYeo provides practical guidance, training, and advisory services to help businesses navigate e-Invoicing confidently and stay compliant with LHDN requirements.
