Essential Updates for Businesses

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	Annual Turnover Range	Implementation Date
Phase 3	RM5 million – RM25 million	01 July 2025
Phase 4	RM1 million – RM5 million	01 January 2026
Phase 5	Up to RM1 million	01 July 2026
Exemption	Below RM500,000*	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.

ThinkTx_Tax Sphere_Latest Tax Updates 06062025.pdf

Download PDF • 410KB