Update of foreign currency handling in Malaysia

Following consultation with the Inland Revenue Board of Malaysia (LHDN), a format update to the Clearance Request format sent to LHDN will be implemented.

Currently for documents issued in currencies other than Malaysian Ringgit (MYR), we recommend including tax amounts in both the original currency and MYR. This recommendation is still in place in anticipation of a future Peppol adoption in Malaysia. However, moving forward the reported document to LHDN will support two methods for specifying tax amounts in foreign currency documents:

1. Existing Method: All amounts are expressed in the document currency, except for tax amounts, which are in MYR (the tax currency).
2. New Method: In alignment with LHDN's latest recommendation, all amounts are expressed in the document currency, with exchange rates (if provided) for foreign currencies.

While the existing dual-currency method technically complies with specifications, it presents visualization challenges within the LHDN/MyInvois portal.

To ensure a smooth transition, the update retains the existing method when an exchange rate is unavailable in the source document. When an exchange rate is available, the new method, expressing all amounts in the document currency, will be applied in accordance with LHDN's recommendation. This ensures that current customers who do not provide exchange rates will not be impacted, while those who do will benefit from the improved visualization.

The update will be implemented on March 20th 2025.