logo
IRB urges businesses to adopt e-Invoicing ahead of deadline

IRB urges businesses to adopt e-Invoicing ahead of deadline

New Straits Times12 hours ago

KUALA LUMPUR: Businesses ready to adopt the e-Invoice system are encouraged to begin the transition immediately, even if their mandatory implementation phase has not yet started.
Inland Revenue Board (IRB) chief executive officer Datuk Dr Abu Tariq Jamaluddin said the agency welcomes early adoption from businesses, stressing that there is no need to wait for the official rollout timeline.
"We encourage all traders who are ready to participate in the e-Invoice system to do so. They are actually welcome to join without waiting for the designated timeline," he told reporters after visiting Media Prima News and Current Affairs Division facilities in Balai Berita, Jalan Riong, Bangsar today.
IRB on last Thursday said that the implementation phase for e-invoices for taxpayers with annual income or sales exceeding RM1 million but not exceeding RM5 million has been postponed to Jan 1, 2026.
Meanwhile, the implementation phase for taxpayers with annual income or sales up to RM1 million has been postponed to July 1, 2026
Taxpayers with an annual income or sales below RM500,000 are exempted from the implementation of the e-Invoice system.
The board said the decision was made after the government acknowledged the efforts of taxpayers, particularly micro, small and medium enterprises (MSMEs), to comply with e-invoicing legal requirements, which demand sufficient preparation time and pose numerous implementation challenges.
E-invoicing has been implemented in phases since last year, with the first phase starting on August 1 for businesses with annual revenue over RM100 million.
The second phase began on January 1 this year, extending the requirement to businesses with annual revenue between RM25 million and RM100 million.
Abu Tariq said both phases have received a positive response, with more than 300 million e-invoices successfully submitted to date.
He added that although there is no specific revenue target for the initiative, improved record-keeping is expected to lead to an overall increase in tax collection over time.
"Our aim is not only to improve tax compliance but also to help businesses maintain more accurate and organised records. This will support better reporting and ultimately contribute to more effective tax administration.
"We don't have a specific target for this initiative but we expect that with better record-keeping, tax collection should also continue to increase," he added.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Vietnam top carmaker VinFast's revenue surges as EV deliveries jump
Vietnam top carmaker VinFast's revenue surges as EV deliveries jump

The Star

time7 hours ago

  • The Star

Vietnam top carmaker VinFast's revenue surges as EV deliveries jump

HANOI (Agencies): Vietnam's VinFast said its first-quarter revenue more than doubled as deliveries of its electric vehicles jumped nearly four times in the three-month period. Revenue grew 150% to US$656.5 million in the January-March period compared with analysts' average estimate of US$520 million, according to data compiled by LSEG. The EV startup made the statement at a conference on expanding localization and developing supplier systems that it organised on Monday. Accordingly, the manufacturer will offer a 50% discount on land rental fees for the first three years and 20% for the next five years for businesses that are its suppliers when developing factories at two VinFast complexes in Hai Phong city and Ha Tinh province. In addition to support in terms of premises, VinFast commits to buying its suppliers' all products per plans agreed with them. It will also connect the domestic suppliers with foreign companies according to their demand. "As a result, VinFast's suppliers can receive technology and experience transfer, gradually improve international competitiveness and proactively participate in the global supply chain," it said in a release. The carmaker aims to have the localization rate of its products rise to 80% by 2026. At the end of 2024, Le Ngoc Anh, director of VinFast Vietnam, had disclosed that the localization of its EVs was more than 60%, including the body, engine, roof, and shock absorbers. Compared to internal combustion engine vehicles assembled in Vietnam, this rate is quite high, because the highest localization rate of gasoline and diesel vehicles in the country is about 40%, according to VinFast. The company noted that its method of calculating the localization rate is similar to that of the Ministry of Industry and Trade and other car companies in Vietnam. VinFast was founded in 2017 by billionaire Pham Nhat Vuong, who is currently the company's CEO. In 2022, it switched to the production and sales of EVs. In 2025, the firm aims to sell 200,000 cars. In the first four months of this year, it sold nearly 44,700 cars, completing about 22.3% of the year's plan and leading the domestic market. In 2024, VinFast reaped over VND44,000 billion ($1.8 billion) in revenue, up 58% from 2023. However, the company suffered a net loss of more than VND77,354 billion (over $3 billion) last year. - Reuters

SST expands from July, but essentials stay tax-free
SST expands from July, but essentials stay tax-free

Malaysian Reserve

time8 hours ago

  • Malaysian Reserve

SST expands from July, but essentials stay tax-free

by AUFA MARDHIAH STARTING July 1, 2025, the government will expand the Sales and Service Tax (SST) to include more luxury goods and service sectors — but essential items and key services for Malaysians will remain tax-free. 'To ensure the majority of the people are not affected by the SST review, the MADANI Government is taking a targeted approach to ensure basic goods and services are not taxed. 'In addition, various facilities are also provided to reduce the impact on micro, small and medium enterprises (MSMEs),' said the Finance Minister 2, Datuk Seri Amir Hamzah Azizan (picture), in a statement. The move is part of efforts to strengthen the country's finances without raising the cost of living for most people. Under the updated rules, essential goods like rice, vegetables, cooking oil, medicine, books, pet food, cement, sand, and farming supplies will continue to be exempt from sales tax. According to the ministry, this is to protect the cost of living and keep inflation under control. However, some non-essential and luxury items will now be taxed. A 5% sales tax will apply to things like king crab, truffle mushrooms, imported fruits, essential oils, silk fabrics, and industrial machinery. Premium items such as racing bicycles and antique artwork will be taxed at 10%. The service tax will also be extended to six new sectors — rental and leasing, construction, financial services, private healthcare, education, and beauty services. The tax rates will range from 6% to 8%, depending on the type of service and revenue earned. For rental and leasing services, an 8% tax will be charged only if the company earns more than RM500,000 a year. Exemptions include residential property rentals, reading materials, overseas leasing, and MSMEs earning below the threshold. Construction services will face a 6% tax if the provider earns over RM1.5 million a year. Housing projects and public facilities are exempt, and B2B transactions may also qualify for relief to avoid double taxation. In finance, only services with fees or commissions will be taxed at 8%. Basic services like savings accounts, interest charges, and Islamic financing will remain tax-free. Other exemptions include forex gains, remittances, and life or medical insurance brokerage. Private healthcare will only be taxed for non-Malaysians at a 6% rate. Malaysians will remain exempt from both public and private healthcare costs, including traditional treatments and allied health services such as physiotherapy, audiology, and speech therapy. In education, private schools that charge more than RM60,000 per student per year will be taxed. However, Malaysian students in all education levels will not be affected. Special exemption will also be given to students with disabilities. Beauty services like facials and hairstyling will be taxed at 8%, but only if the business earns more than RM500,000 annually. The government will give companies time to adjust and has promised no penalties for non-compliance until the end of 2025. 'The additional revenue from this improved SST will support further enhancements in public services, particularly in expanding cash assistance to the people and improving infrastructure and service delivery nationwide,' he said further. Businesses are encouraged to check if they fall under the new tax rules and to consult the Royal Malaysian Customs Department for guidance. The measure forms part of the government's broader MADANI economic framework aimed at strengthening Malaysia's social safety net and promoting targeted taxation without increasing the cost of living for the general public.

What's new in the expanded SST starting July 1?
What's new in the expanded SST starting July 1?

New Straits Times

time8 hours ago

  • New Straits Times

What's new in the expanded SST starting July 1?

KUALA LUMPUR: The government is expanding the Sales and Service Tax (SST) to make the system more targeted and fair, focusing on those who spend more on non-essential goods and services. Here's what's changing: 1. More services will be taxed Six new categories of services will be subject to the service tax, namely leasing and rental, construction, finance, private healthcare, education, and beauty services. These will be taxed at varying rates between six and eight per cent, with thresholds and exemptions in place to safeguard lower-income groups and small businesses. 2. Essentials stay tax-free Basic goods like rice, cooking oil, sugar, milk, medicines, books and even building materials such as cement and sand remain under the zero per cent sales tax. No changes there, your everyday needs won't cost more because of SST. 3. Luxury items face higher tax Goods like imported fruits, king crab, truffle mushrooms, silk fabric, racing bikesand antique paintings will now be taxed at five or 10 per cent, depending on the item. These are considered non-essential. 4. What's taxed and what's not, in the new service categories • Leasing and rental: Taxed at eight per cent if annual income exceeds RM500,000. But residential rentals and small businesses are exempt. • Construction: Taxed at six per cent for contracts above RM1.5 million. Public housing and residential buildings are exempt. • Finance: Fee-based services taxed at eight per cent, but basic banking, Islamic finance and remittances are not affected • Private healthcare: Only non-citizens will pay a six per cent tax. Malaysians are exempt, including for traditional medicine like Chinese, Malay and Indian therapies. • Education: A six per cent tax applies to private schools charging over RM60,000 per student annually and higher education for international students. Malaysians and persons with disabilities are exempt. • Beauty services: Taxed at eight per cent if a business earns over RM500,000 a year. This includes facial treatments and hair salons. 5. Grace period for businesses No penalties or enforcement until Dec 31, 2025, giving businesses time to adapt.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store