What is the classification code for hiring an excavator and backhoe? Our company also sublets part of our land — what classification code should we use?

A. Hiring Excavator & Backhoe

1. If this is an expense (you are hiring from a supplier) → Request the supplier to issue an e-Invoice. The classification code will be determined by the supplier.

2. If you rent/lend the machinery to a customer →

- Use 028 – Rental of motor vehicle if it’s a pure machinery rental without operator.

- Use 022 – Others if the rental includes an operator, as it is considered a service (income transaction).

B. Subletting Part of Land

Meaning: Subletting means leasing out part of a property or land you have the legal right to occupy, to another party.

1. As Income (you are the landlord/sublessor):

- Issue an e-Invoice to the tenant/sublessee.

- Use 022 – Others (since this is an income transaction).

2. As Expense (you are the tenant/sublessee):

- Request an e-Invoice from the landlord/sublessor.

- If you are requireded to self-bill (e.g., landlord is not or the sublessor is an individual not conducting business), use 036 – Self-Billed Others (expense transaction).

Recommendation: Always retain the tenancy or sublease agreement to justify your classification code and transaction type in case of LHDN queries.