The government has extended the e-invoicing implementation timeline for SMEs with annual sales between RM150,000 and RM500,000 to January 1, 2026, with an additional six-month transition period. Finance Minister II Senator Datuk Seri Amir Hamzah Azizan stated this extension will provide more than 240,000 affected SMEs with adequate preparation time for the digital transition.
Exemptions for Micro-Businesses:
Small traders generating annual sales below RM150,000 – including food stall operators and small vendors – will be exempt from e-invoicing requirements. This exemption benefits approximately 700,000 micro-enterprises nationwide.
Government Support Initiatives:
To facilitate the transition, the government is offering:
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Complimentary access to the MyInvois portal and mobile application
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Nationwide training programs conducted by LHDN
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Tax incentives for digital adoption
Current Adoption Statistics:
Since its phased rollout began in August 2024 for large corporations (RM100+ million revenue), the system has seen:
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Over 25,000 registered companies
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More than 181 million e-invoices generated
Foreign Worker EPF Contributions:
In separate labor policy developments:
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Employers must now contribute 2% to foreign workers’ EPF accounts
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Workers will match this with 2% contributions
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The policy remains effective until further government review
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Employer contributions qualify for tax deductions (up to 19% of total wages) under Section 34(4) of ITA 1967
Enhanced SME Support Measures:
Additional fiscal measures to support business digitalization include:
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Accelerated capital allowances for ICT investments:
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Deduction period reduced from 4 to 3 years (effective 2024)
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Special tax deductions for e-invoicing consultancy:
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Up to RM50,000 annually (2024-2027)
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The government emphasizes these measures aim to create equitable business conditions while supporting Malaysia’s digital transformation across all enterprise levels. Businesses are encouraged to utilize the available resources to prepare for upcoming compliance requirements.
Source Credited: https://www.businesstoday.com.my/2025/02/20/e-invoicing-rollout-for-smes-deferred-to-2026/
