What exactly is a TIN?
The Tax Identification Number (TIN) is a unique number assigned to individuals and businesses for tax purposes. This number, comprising a prefix code and a set of numbers, enables the Inland Revenue Board (IRB) to identify taxpayers for tax purposes. Tax identification number is also an INCOME TAX NUMBER as per existing records with the IRB.
Who needs a TIN in Malaysia?
Individuals
Residents: Individuals residing in Malaysia, regardless of their citizenship, are generally required to have a TIN for income tax purposes.
Non-residents: Non-residents earning income in Malaysia also need a TIN if their income is subject to Malaysian taxation.
Businesses
Companies: All companies registered in Malaysia are required to have a TIN.
Partnerships: Partnerships engaged in business activities in Malaysia typically need a TIN.
Sole Proprietorships: Sole proprietors operating business in Malaysia also need a TIN for tax purposes.
How to Obtain a TIN in Malaysia?
TIN will be given based on application made or provided by the IRB through the following methods:
- Automatic Registration:
- Registration of income tax numbers for individuals will be done automatically through monthly tax deduction (MTD).
- Newly incorporated companies (local or foreign companies) that have registered online with the Companies Commission of Malaysia (SSM).
- Online Registration:
- Through the e-Daftar system in the MyTax Portal.
- Through the e-Daftar system in the MyTax Portal.
- Manual Registration:
- By visiting a nearby IRB branch.
Checking Your TIN Online
Once registered, you can easily check your Tax Identification Number (TIN) online through the MyTax Portal.
- Log in using your Identification Card number (NRIC) and password to access personalised Tax Dashboard, where your TIN will be displayed.
If you are unable to find your TIN through the MyTax portal, you can register and obtain it through the e-Daftar system. Here’s how:
- Visit the MyTax Portal.
- Select the “e-Daftar” option.
- Fill in the required information, including your taxpayer type, email address and phone number.
- Click “Search” to register and receive your TIN.
How TIN Ensures Compliance and Security in e-Invoicing
A Tax Identification Number (TIN) is crucial in e-invoicing for several reasons:
- Unique Identification: The TIN acts as a unique identifier for both businesses and individuals, allowing the IRB to accurately track and verify each taxpayer’s transactions.
- Facilitating Automated Processes: e-Invoicing systems often rely on the TIN to automate the validation and processing of e-invoices. This ensures that the invoices are correctly associated with the right taxpayer.
- Prevention of Fraud: By requiring the TIN on e-invoices, the IRB can minimize the risk of fraudulent activities, such as using false identities or making duplicate claims for tax refunds.
- Improved Business Credibility: Possessing a valid TIN enhances the credibility of a business. It shows that the business is registered and compliant with tax regulations, which can build trust with suppliers, customers and partners.
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