THE Malaysian government has delayed the implementation of its electronic invoicing system following concerns raised by business owners, particularly micro, small and medium enterprises (MSMEs), Deputy Finance Minister Lim Hui Ying announced on Saturday.
Speaking at the launch of smart public toilets at the Lebuh Cecil Market in Penang, Lim said the government had taken note of the challenges faced by the business community and responded by revising the timeline into additional phases.
“What we initially planned was to implement the system effective 1 July 2025 for companies with annual sales of RM500,000 and above. However, we understand their concerns, especially the MSMEs, and have revised it into three additional phases,” she said.
Under the updated schedule, the Inland Revenue Board (LHDN) has announced that taxpayers with income or annual sales below RM500,000 will be exempt from the system for now. For those earning between RM1 million and RM5 million, implementation is postponed until 1 January 2026. Companies with income up to RM1 million will only be required to comply starting 1 July 2026.
Taxpayers earning between RM5 million and RM25 million will remain subject to implementation from 1 July 2024, as part of the system’s third phase.
Lim stressed that the MADANI government remains committed to supporting businesses through digital transition and acknowledged that more time was needed for companies to adjust to the new requirements.
She also addressed the separate issue of stamp duty on employment contracts, noting that while the requirement was not previously enforced, it would now take effect for new contracts from 1 January 2026.
“LHDN and the Finance Ministry have considered this and decided that employment contracts before 1 January 2025 will be exempted, but contracts starting on 1 January 2026 will be required to pay stamp duty,” she said.
Lim expressed confidence that companies would adhere to the Stamp Act 1949 and its requirements, adding that the government would continue modernising administrative systems to support compliance and efficiency. - June 8, 2025
