- within Corporate/Commercial Law topic(s)
- in United States
- with readers working within the Securities & Investment industries
- within Corporate/Commercial Law, Employment and HR and Tax topic(s)
e-Invoicing: Exemption threshold Raised from RM500,000 to RM1 million
In an effort to ease the burden on small and medium enterprises, the Prime Minister Datuk Seri Anwar Ibrahim had announced on 6 December 2025 that the e-invoice exemption threshold will be raised to RM1 million annual turnover or revenue beginning 1 January 2026. Taxpayers with an annual turnover or revenue of up to RM5 million will still be required to implement e-Invoice by 1 January 2026.
To note that:
- New businesses or operations commencing from the year 2023 to 2025 with an annual turnover or revenue of at least RM1 million will be required to implement e-Invoice by 1 July 2026; and
- New businesses or operations commencing from 2026 onwards will be required to implement e-Invoice by 1 July 2026 or upon the operation commencement date. Where the first year's turnover or revenue is less than RM1 million, then the e-Invoice implementation date would be 1 January in the second year following the year in which the total annual turnover or revenue reaches RM1 million.
For clarity, e-Invoice is defined to mean a digital representation of a transaction between a supplier and a buyer (a file created in a format specified by the Inland Revenue Board of Malaysia that can be automatically processed by relevant systems), and the obligation to comply is on the taxpayer to issue and submit e-Invoice(s) for validation.
The above announcement was welcomed by stakeholders such as the Associated Chinese Chambers of Commerce and Industry Malaysia, the Federation of Malaysian Manufacturers, and the Small and Medium Enterprises Association Malaysia.
Stamping of Documents
As a reminder, employers are advised to be mindful of their stamp duty obligations. This is as:
- employment contracts finalized between 1 January 2025 and 31 December 2025 are subject to stamp duty, but are granted a remission for late stamping, provided the employment contracts are stamped on or before 31 December 2025; and
- employment contracts finalized after 1 January 2026 will still be subjected to stamp duty, and late stamping of the same will be subjected to penalty accordingly.
For additional information, kindly refer to our Client Alert (Recent Developments – Commercial Laws) dated 5 August 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
