Certain expenses incurred by employees on behalf of their employer

Simplifying Employee Expenses: IRBM’s Concession

Employees often incur expenses on behalf of their employers, ranging from accommodation to telecommunication costs. Traditionally, employees submit expense claims with supporting documents to validate these expenses. However, with the introduction of e-Invoice, a new process has emerged. Under the e-Invoice system, employees are now required to request e-Invoices in their employer’s name as proof of expenses.

But what happens when obtaining such e-Invoices is challenging?

To address this, the Inland Revenue Board of Malaysia (IRBM) offers a concession:

• It’s important to note that employers must demonstrate that employees incurred the expenses on their behalf to qualify for these concessions.
• These measures aim to simplify the expense reimbursement process and support businesses in managing their expenses effectively.

Based on the scenario mentioned above, the following steps are involved in the process:

Conclusion

The Inland Revenue Board of Malaysia (IRBM) has implemented concessions to simplify the process of employee expenses on behalf of their employers. Employees now need to request e-Invoices in their employer’s name as proof of expenses. In cases where this is not possible, e-Invoices issued in the employee’s name are accepted. For expenses incurred overseas, foreign bills, receipts, and invoices can be used as valid proof of expense. These measures aim to streamline expense reimbursement and support effective expense management for businesses.

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