TIN Number in Malaysia: What It Is and How to Apply

A unique taxpayer identification number is vital in every country for tax reporting, collection, and assessment. It is tied to financial activities and used for transactions, filings, bank accounts, and more. In Malaysia, the Tax Identification Number (TIN) plays a pivotal role in ensuring compliance with tax laws, e-invoicing and facilitating smooth business operations.

This blog will explore everything you need to know about TIN number in Malaysia. From understanding its format and providing examples to guiding you through obtaining a TIN for individuals and companies, we will cover it all. Additionally, we will outline the required documents for TIN registration, explain how to check or verify your TIN and explore its various uses and functions.

What is a TIN in Malaysia?

In Malaysia, the Tax Identification Number (TIN), also known as the Income Tax Number, is a unique identifier assigned to individuals and entities who are registered taxpayers with the Inland Revenue Board of Malaysia (IRBM)

It is a combination of a TIN Code, which reflects the type of taxpayer (e.g., individual, company, or partnership), and a set of numbers unique to the taxpayer. The TIN number is essential for ensuring accurate tax collection and compliance.

Function of Tax Identification Number in Malaysia

Tax Identification Number is very essential and serves a lot of purposes in Malaysia. Its purposes are-

• Tax Compliance and Reporting: To comply with direct tax too, TIN is required. It is used to track payments, file tax returns. Furter, while filing tax returns, deductions are tax reliefs are available. To avail these and other tax benefits, TIN’s are used.
• Unique Identification: TIN has a unique number of every individual and business. It is used for identifying the taxpayers for government grants and subsidies. It is used to identify Malaysian taxpayers with financial accounts abroad.
• Business registration: TIN is required to obtain various licenses and permits to operate in Malaysia.
• International Tax Cooperation: TIN facilitates communication and information exchange between tax authorities of different countries, enabling cooperation in combating tax evasion and avoidance.
• Automatic Exchange of Information: As required by international agreements such as the Common Reporting Standard (CRS), They serve as a key component in identifying taxpayers' financial accounts held abroad.
• Tax Treaties and Agreement: Income Tax Number helps in determining the residency status of taxpayers and ensuring that they receive the benefits and exemptions provided under bilateral or multilateral tax treaties.

Implementation of TIN under the ITA 1967, RPGT Act, and Stamp Act

Difference Between TIN, ITN, and NRIC

In Malaysia's tax system, Tax Identification Numbers (TIN), Income Tax Numbers (ITN), and National Registration Identity Card Numbers (NRIC) play distinct roles but are interconnected.

Both TIN and ITN are crucial for tax compliance, while NRIC serves as an alternate identifier, particularly for CRS reporting.  TIN is specifically used for any number that identifies a taxpayer –it could be ITN or NRIC.

Who needs a Tax Identification Number (TIN)?

Any company or individuals who falls into the following categories is required to have an income tax number:

1. Individuals who are employed and Monthly Tax Deductions are made.
2. Taxpayer who is assessable and chargeable to tax.
3. Taxpayer who is required to furnish a return.
4. Companies , businesses, trusts or any other entity conducting business within Malaysia

Taxpayers encompass individuals as well as entities such as companies, bodies of persons, limited liability partnerships.

Process of TIN Registration in Malaysia

In Malaysia, obtaining a Tax Identification Number (TIN), also known as the Income Tax Number, can be done through several methods:

Automatic Registration

Some individuals are automatically registered for a TIN without applying:

• Those registered for income tax number through monthly tax deduction (MTD).
• Newly incorporated companies that have registered online with the Companies Commission of Malaysia (SSM) at the MyCoID Portal.
• When the person or Individual registers on any other tax authority

Online Registration (e-Daftar)

Individuals and companies who are eligible for a TIN and need a TIN can register online through the e-Daftar system provided by the Inland Revenue Board of Malaysia (IRBM).

Here are the steps to register online:

1. Access the online registration portal at https://edaftar.hasil.gov.my/index/index.php.
2. Provide all relevant details such as the person/entity name and unique reference number (Passport number, company registration number, partnership registration number, etc) of the given person/entity.
3. Enter either the registered phone number or registered email and click on search.
4. Once the person/entity is found, it will either allow Tin registration or if the entity already has a TIN or income tax number, it will show that.
5. Proceed with registration, fill in necessary details, and submit required documents.
6. Complete the TIN registration process.

Manual TIN Registration at IRBM Branches

Taxpayers can also opt for manual registration by submitting the registration form to the nearest IRBM branch. Forms can be obtained from the IRBM website or from the branches directly.

For specific categories of taxpayers, such as non-resident individuals, companies, cooperative societies, partnerships, employers, associations, and others, there are specific registration forms and supporting documents required. These documents typically include identification documents, business registration certificates (if applicable), and other relevant paperwork as outlined by the IRBM.

Once the registration process is completed and verified by the IRBM, the taxpayer will be issued a TIN.

TIN Format and Example

The Tax Identification Number (TIN) in Malaysia serves as an alphanumeric identification, typically comprising 11, 12, or 13 characters. It consists of a combination of the file number type and the Income Tax Number.

TIN Format for Individuals

The current TIN format for Individuals begins with "IG." Previously, before 2nd January 2023, it started with "OG" or "SG." A 9–11-digit unique identifier follows the "IG" prefix.

TIN Malaysia Example: IG845462070, IG57303584070

TIN Format for Companies and Non-Individuals

For companies and other entities, the TIN starts with a specific alphabet code (one or two letter), indicating the nature of the entity, followed by a 10 or 11-digit unique number. Here are the respective characters representing different entity categories:

1. Companies: C
2. Cooperative Societies: CS
3. Partnerships: D
4. Employers: E
5. Associations: F
6. Non-Resident Public Entertainers: FA
7. Limited Liability Partnerships: PT
8. Trust Bodies: TA
9. Unit Trusts/Property Trusts: TC
10. Business Trusts: TN
11. Real Estate Investment Trusts/Property Trust Funds: TR
12. Deceased Person’s Estate: TP
13. Hindu Joint Families: J
14. Labuan Entities: LE

Update Effective 2nd January 2023: A "0" is added after every TIN number for non-individual entities to standardize the format.

Example: 

• Company: C20830570210
• Cooperative Societies: CS1234567890

Documents Required for TIN Application

*The category-wise list of documents required to obtain a TIN in Malaysia is detailed below:

Importance of Tax Identification Number in Malaysia

TIN is an important pillar in the Malaysian taxation system. It is not only useful on an individual level but also for businesses. In case of individuals, it is used for following purposes:

• Tax Compliance
• Obtaining tax benefits
• Identification and verification
• Financial transactions

 In case of businesses, it is important as it aids in the following purposes:

• Tax Administration
• Statutory Compliances and other necessary compliances
• Obtaining licenses and aiding in registration of business.

How to check TIN, ITN or NRIC Number?

To verify or find the Tax Identification Number (TIN) or Income Tax Number (ITN), Malaysian taxpayers can:

• Check the front page of their individual income tax return.
• To find tax Identification number of companies and businesses, access the MyTax Portal via https://mytax.hasil.gov.my and select the "e-Daftar" menu and fill in the details related to the company like company incorporation number or business registration number.
• Utilize the Malaysian National Registration Identity Card Number (NRIC Number) as a functional equivalent, found on the second page of their Malaysian Passport.
• HASiL Live Chat.
• HASiL Care Line (+603-8911 1000 / +603-8911 1100 for overseas callers).
• The Customer Feedback Form on HASiL's Official Portal.
• Visit the nearest HASiL Office.

Types of TIN in Malaysia for e-Invoicing

The types of Tax Identification Numbers (TINs) in Malaysia for e-invoicing purposes are structured based on specific categories of taxpayers and use cases. The key types are:

General TINs:

• EI00000000010: Assigned for Malaysian individuals where only MyKad/MyTentera is provided.
• EI00000000020: Used for foreign buyers or shipping recipients where TINs are unavailable.
• EI00000000030: Applicable for foreign suppliers in cases where TINs are not provided​​

Specific TINs:

These include TINs assigned to individuals, businesses, and other entities registered with the Inland Revenue Board of Malaysia (IRBM) for tax purposes.

Conclusion

The Tax Identification Number (TIN) in Malaysia plays a important role tax reporting and compliance for individuals and entities. With the Inland Revenue Board of Malaysia (IRBM) overseeing the issuance and management of TINs, it is essential for taxpayer to ensure they are properly registered and that their TINs are up-to-date.

For Malaysian citizens aged 18 and above, the TIN is linked to the National Registration Identity Card (NRIC) number, serving as a functional equivalent in the absence of a formal TIN. Meanwhile, for entities, various categories such as companies, partnerships, and associations are assigned specific TIN codes. Taxpayers can conveniently check or apply for a TIN online via the MyTax portal or the e-Daftar system.

To prevent leakage of tax revenues, and to make people more compliant, Malaysian Government is constantly bringing out changes. With the developments such as e-Invoicing, introduction of TIN’s, the Government along with revenue is moving towards digitalisation. It is beneficial and advisable to have a TIN in Malaysia as it helps in aid in many things. Application for obtaining the TIN is straightforward which helps to avoid unfavourable consequences.