The Malaysian government has announced an e-invoice exemption for small traders with annual sales below RM150,000, benefiting over 700,000 businesses, including hawkers. This initiative aims to ease the compliance burden for micro-businesses. Additionally, the government has postponed the e-invoice implementation for MSMEs with sales between RM150,000 and RM500,000 to Jan 1, 2026, with a six-month transition period, impacting 240,000 MSMEs.
The e-invoicing implementation timeline is as follows:
- Aug 1, 2024: Companies with annual sales exceeding RM100 million required to adopt e-invoicing.
- Jan 1, 2025: Phase 2 implementation for businesses with sales between RM25 million and RM100 million.
- July 1, 2025: Phase 3 rollout for all businesses, including MSMEs.
- Jan 1, 2026: Final phase for MSMEs with RM150,000 to RM500,000 in annual sales, with a six-month transition period.
Since its launch, the e-invoicing system has seen:
- 25,173 companies onboarded
- 181.3 million e-invoices issued
In a related update, the government has set the Employees Provident Fund (EPF) contribution for foreign workers at 2% for both employers and employees. This measure aims to:
- Ensure fair employment costs between local and foreign workers.
- Prevent lower hiring costs for foreign workers compared to local employees.
- Enable tax deductions of up to 19% for employers making these contributions.
These policy changes highlight the government’s commitment to:
- Supporting MSMEs with smoother transitions and exemptions.
- Enhancing tax compliance through structured e-invoicing.
- Ensuring equitable employment regulations for businesses in Malaysia.
Source by: https://theedgemalaysia.com/node/745164
