66,000 e-commerce businesses not complying with tax regulations, says LHDN


PUTRAJAYA: The Inland Revenue Board (LHDN) has identified 66,000 businesses on e-commerce platforms that do not comply with the estimated tax instalment payments under the Income Tax Act 1967.

It said in a statement on Tuesday (March 4) said this was detected through the submission of e-invoices, which contain details of individuals and companies operating through e-commerce platforms since Aug 1 last year.

ALSO READ: SMEs with RM500,000 turnover and below given six-month e-invoicing extension, says Amir Hamzah

"Checks also found no records of these businesses submitting income tax return forms.

"The 66,000 businesses have issued a total of four million e-invoices,” the statement said.

LHDN urged these businesses to update their tax records and ensure full compliance to avoid enforcement action.

"With the implementation of e-invoices, LHDN actively monitors taxpayer data that has been verified in the MyInvois system to ensure voluntary and continuous tax compliance, in line with the principles of fairness in the country’s taxation system,” it said.

ALSO READ: LHDN has no plans to extend e-invoicing deadline

As of Monday (March 3), approximately 196 million e-invoices have been issued, covering voluntary participants from the first, second and third phases, LHDN said.

"This indicates a positive level of acceptance among taxpayers in complying with the e-invoicing system.

"LHDN also wishes to inform that the grace period for Phase One taxpayers ended on Jan 31, and they are required to fully implement the e-invoicing system according to the guidelines from Feb 1,” it added. – Bernama

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