Malaysia: Determination of foreign currency exchange rates for service and sales tax invoices
Public Ruling 1/2026
The Director General of Customs on March 31, 2026, issued Public Ruling 1/2026 (“Determination of Foreign Currency Exchange Rates for Service Tax Invoices and Sales Tax Invoices”).
The ruling provides that when service tax-registered persons or sales tax-registered manufacturers issue invoices in foreign currency, the foreign currency amount must also be stated in MYR using the selling foreign exchange rate applicable in Malaysia at the time the taxable service is provided or the goods are sold.
The foreign exchange selling rate is based on the rate published by one of the following bodies:
- The Central Bank of Malaysia (or Bank Negara Malaysia (BNM))
- Any commercial bank in Malaysia or any bank registered under BNM
- International news agencies such as Bloomberg, Reuters, or Oanda
- Foreign central banks such as European Central Bank or Federal Reserve Bank of New York
The same source must be used consistently in business reporting and accounting for at least one year from the end of the accounting period.
Read an April 2026 report prepared by the KPMG member firm in Malaysia