GEORGE TOWN: The Malaysian government has announced a deferment in the implementation of the electronic invoicing (e-invoice) system, following constructive dialogue with business owners, particularly those within the micro, small, and medium enterprise (MSME) segment. Deputy Finance Minister Lim Hui Ying confirmed that the decision was made after careful consideration of industry feedback and readiness.
Lim stated that the postponement is intended to provide companies with additional time to adjust to the Inland Revenue Board’s (IRB) e-invoicing framework. The system, initially scheduled to be rolled out on 1 July 2025 for businesses with annual sales of RM500,000 and above, will now be implemented in three revised phases.
According to an IRB statement dated 5 June, taxpayers with income or annual sales below RM500,000 will be exempt from the system for the time being. Those with revenue between RM1 million and RM5 million will begin using the system from 1 January 2026, while those earning up to RM1 million will transition on 1 July 2026.
“The original plan was to commence implementation on 1 July 2025 for businesses generating RM500,000 and above in annual sales. However, in response to concerns raised by MSMEs, the government has revised the approach to include three additional phases,” Lim said during the launch of smart toilets at the Lebuh Cecil public market.
She reiterated the Madani government’s commitment to supporting the business community, particularly in adapting to regulatory transformations that impact operational processes.
Lim also confirmed that the third phase of e-invoicing, which commences on 1 July 2024, will apply to taxpayers with annual income or sales between RM5 million and RM25 million.
In a separate announcement, Lim addressed the stamping of employment contracts, clarifying that the IRB has not previously enforced this requirement. Moving forward, contracts executed prior to 1 January 2025 will be exempt. However, beginning 1 January 2026, employment contracts will be subject to stamp duty in line with existing legislative provisions.
She expressed hope that companies will ensure compliance with all stipulations under the Stamp Act 1949, especially with regard to the stamping of employment contracts.
-Bernama
