As the Malaysian government moves forward with implementing e-invoicing, the insurance and takaful industry faces several new requirements and adjustments. Here are the main points from the latest FAQ update:
General Guidelines
Consolidated E-Invoice:
Insurance companies can issue consolidated e-invoices for policyholders who do not require individual e-invoices. Annual premium statements can also be used for this purpose. Transmission of Annual Data:
Full year data can be transmitted in February/March 2025 for premiums paid from January to December 2024, without needing to exclude the period before August 2024. Request for Validated E-Invoices:
Customers can request validated e-invoices outside the usual statement issuance cycle, though the regular process should be followed. E-Invoice for Non-Tax Eligible Products:
Policyholders can request e-invoices even for products not eligible for tax relief.
Underwriting and Distribution
Premium Breakdown:
E-invoices must detail the breakdown of premiums paid, including classification codes for different types of insurance benefits. Joint Insurance Policies:
For joint policies, the principal policyholder is listed as the buyer in the e-invoice. Separate e-invoices can be issued upon request by the other policyholder. Collection on Behalf:
The e-invoice should include details of collections on behalf, like stamp duty and third-party fees. Master and Individual Policies:
For master policies with intermediaries, e-invoices are issued to intermediaries unless they are not issuing e-invoices to end customers. For individual policies purchased through intermediaries, e-invoices are issued to end customers.
Claims and Benefits Payment
Self-Billed E-Invoices:
Insurance companies must issue self-billed e-invoices for claims, compensations, and benefit payments to policyholders or beneficiaries. Disposal of Damaged Assets:
The treatment of e-invoices depends on asset ownership. For assets transferred to the insurance company, an e-invoice must be issued for their disposal. Knock-for-Knock Arrangements:
E-invoices are required for claims paid out and for recoupment of claims between insurance companies.
Additional Points
Transitional Issues:
New e-invoices for policy endorsements do not need to reference original invoices issued before the implementation of e-invoicing. Interest and Late Fees:
E-invoices are required for interest on policy loans and late payment interest. Bonus and Surplus Payments:
Self-billed e-invoices must be issued for bonuses and surplus payments to participants.
For more detailed information, refer to the full FAQ document here. Stay informed and compliant with these new regulations to ensure a smooth transition to e-invoicing.
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