15 hours ago
- Business
- New Straits Times
Govt delays e-invoice system after feedback from MSMEs
GEORGE TOWN: The government has postponed the implementation of the e-invoice system after weighing the concerns of business owners, particularly the micro, small, and medium enterprises (MSMEs), said Deputy Finance Minister Lim Hui Ying.
She said with this postponement, the government hopes companies will have more time to adapt to the e-invoice system developed by the Inland Revenue Board (LHDN).
On June 5, LHDN said in a statement that taxpayers with income or annual sales below RM500,000 would be exempted from the e-invoice system for now.
It was postponed to Jan 1, 2026 for those earning between RM1 million and RM5 million, while those with income up to RM1 million will begin on July 1, 2026.
"What we initially planned (was to implement the system) effective July 1 (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.
"The Madani government has taken note of the concerns of our business community," she told reporters after officiating at the launch of Lebuh Cecil Public Market's smart toilets here today.
Lim also said the third phase of the e-invoice implementation, beginning this July 1, will involve taxpayers with income or annual sales exceeding RM5 million up to RM25 million.
On the stamping of employment contracts between employers and employees starting Jan 1, 2026, she said LHDN had not enforced this requirement previously.
"Therefore, LHDN and the Finance Ministry have considered this and decided that employment contracts before Jan 1, 2025, will be exempted, but contracts starting on Jan 1, 2026, will be required to pay stamp duty," she said.
She hopes companies will comply with all provisions under the Stamp Act 1949, particularly those related to stamping requirements. — BERNAMA
