- Malaysia’s Director General of Customs (DGC) issued Public Ruling No. 1/2026 on March 31, 2026, clarifying the mandatory conversion of foreign currency amounts to Malaysian Ringgit (MYR) on service tax and sales tax invoices.
- For invoices issued in foreign currency by registered persons (service tax) and manufacturers (sales tax), the total amount must be converted to MYR using the applicable foreign currency selling exchange rate in Malaysia at the time the service is provided or goods are sold.
- Acceptable sources for the exchange rate include Bank Negara Malaysia, commercial banks, international news agencies (e.g., Bloomberg, Reuters), or foreign central banks, with the requirement that the chosen source be applied consistently for at least one year. Separate rules apply for imported goods versus services regarding exchange rate determination.
Source Thomson Reuters
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