E-invoice Initiative – Malaysia

Strategy, Guide, Approach

Key Takeaways: Malaysia’s E-Invoicing Government Mandate

  • Phased Implementation: The mandate is being implemented in phases, starting with larger businesses and gradually expanding to include smaller companies.
  • Benefits: E-invoicing is expected to reduce paperwork, minimize errors, and accelerate tax compliance. It also provides real-time data for tax authorities, improving tax collection and reducing tax evasion. As part of the government’s initiative to promote e-invoicing, Micro, Small, and Medium Enterprises (MSMEs) are eligible for several incentives as stipulated in the budget 2025. These include a tax deduction of up to RM50,000 per year of assessment from 2024 to 2027 for expenses incurred on consulting services related to e-invoicing implementation. Furthermore, MSMEs can claim a capital allowance of up to 60% on the costs of acquiring Information and Communications Technology (ICT) equipment and software packages for the 2024 and 2025 assessment years.
  • Impact on Businesses: Businesses will need to adapt their accounting systems and processes to comply with the new e-invoicing requirements. This may involve investing in new technology or integrating with the government platform.

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