taxsphere2025-06-063 min read
Revised e-Invoicing Implementation Timeline
The Inland Revenue Board of Malaysia (IRBM) has officially revised the e-Invoicing implementation schedule for businesses with annual revenue below RM5 million. This extension provides additional time for Micro, Small and Medium Enterprises (MSMEs) to prepare for compliance.
Revised e-Invoicing implementation schedule:
Phase: 3
Annual Turnover Range: RM5 million – RM25 million
Implementation Date: 01 July 2025
Phase: 4
Annual Turnover Range: RM1 million – RM5 million
Implementation Date: 01 January 2026
Phase: 5
Annual Turnover Range: Up to RM1 million
Implementation Date: 01 July 2026
Exemption:
Annual Turnover Range: Below RM500,000*
Implementation Date: Exempted until further notice
*Note: The previous exemption threshold was RM150,000
The 6-months interim relaxation period still applies for each phase above, helping businesses ease into compliance.
Restrictions for Consolidated e-Invoices
Effective 01 January 2026, Consolidated e-Invoices will no longer be allowed for transactions exceeding RM10,000. A separate e-Invoice must be issued for each individual transaction involving the sale of goods or provision of services above this threshold.
Stamp Duty Enforcement and Exemptions for Employment Contracts
Pursuant to the Stamp Act 1949, all formal employment contracts regardless of whether they are for part-time or full-time positions, and irrespective of the employee’s nationality are subject to a stamp duty of RM10 per contract. However, contracts involving individuals earning below RM300 per month are exempt from this requirement, a threshold far below Malaysia’s current minimum wage of RM1,700, effectively rendering most employment contracts liable for stamp duty.
Further to the above, the IRBM has recently announced the following:
- Exemption from stamp duty and late penalties for contracts finalised before 01 January 2025
- Penalty remission for contracts finalised between 01 January 2025 - 31 December 2025, if stamped by 31 December 2025
- Full enforcement (duty + penalties) from 01 January 2026 onwards
Action Required by Businesses
In light of these developments, businesses are strongly encouraged to assess their current practices and ensure alignment with the latest e-Invoicing and stamp duty requirements to maintain compliance and avoid potential penalties.