From 1 August 2024, Malaysian employers must apply the right e-invoice treatment for foreign workers.

The rules differ depending on the working arrangement.

Full-time employees : No e-invoice needed. Report wages in Form E and EA/EC.

Freelancers (individual) : Issue self-billed e-invoice.

Freelancers with Malaysian company : Request e-invoice from the company.

Freelancers with overseas company : Issue self-billed e-invoice.

Workers via agency : Request e-invoice from agency, not worker.

Casual workers : Can follow employee (Scenario 1) or freelancer (Scenario 2) treatment. If treated as employees, report wages in Form E.

LHDN presumes casual workers following your instructions are employees.

Always identify the arrangement, keep proper contracts, and submit self-billed e-invoices promptly when required.

This avoids penalties, disputes, and non-compliance issues.

Read the full content in our blog
https://www.ktp.com.my/blog/e-invoice-treatment-for-foreign-employee/13aug2025