e-Invoicing and its Impact on Directors

With the implementation of e-invoicing, it is crucial for directors of companies receiving director fees exceeding RM150,000 per year to understand their obligations regarding e-invoicing. Notably, the IRB has clarified that directors classified under a contract of service are not required to issue e-invoices for their fees, while those under a contract for service must comply with this requirement. Independent directors, typically enter into a contract for service rather than a contract of service.