AdrianYeo Tax KL - The Business Ledger

Real Property Gains Tax (RPGT) 2026: What You Need to Know About LHDN’s New Self-Assessment System

Fri, 10 Apr 2026 13:46:00 +0000

The Lembaga Hasil Dalam Negeri Malaysia (LHDN) has introduced a significant update to the Real Property Gains Tax (RPGT), also known as Cukai Keuntungan Harta Tanah (CKHT), through its Operational Guidelines No. 2 of 2026.

Effective from January 1, 2025, Malaysia transitions to a Self-Assessment System (STS) for RPGT—marking a major shift in how property gains tax is reported, assessed, and paid.

What is RPGT?

Real Property Gains Tax (RPGT) is a tax imposed on gains arising from the disposal of real property or shares in real property companies in Malaysia. It applies to individuals, companies, and other entities.

Key Change: Introduction of Self-Assessment System (STS)

Under the new STS framework:

The seller’s CKHT return form (CKHT 1A / CKHT 1B) is now automatically treated as a deemed tax assessment
This eliminates the need for LHDN to issue a formal notice of assessment
Taxpayers are now fully responsible for accurate reporting and timely payment

This change aligns RPGT with other tax systems in Malaysia, improving efficiency and compliance.

Responsibilities of the Seller (Disposer)

Property sellers now carry greater responsibility under the new rules:

Mandatory e-Filing

All RPGT submissions must be done via the e-CKHT system.

Submit CKHT 1A / CKHT 1B
Deadline: Within 60 days from the date of disposal

Tax Payment

Any balance tax must be paid within 90 days from the disposal date

Amendments

Sellers are allowed one amendment
Must be submitted within 6 months from the original filing deadline

Record Keeping

All relevant documents must be retained for 7 years

Responsibilities of the Buyer (Acquirer)

Buyers also play a crucial role in ensuring tax compliance:

Submit Acquisition Form

File CKHT 2A via e-CKHT
Deadline: Within 60 days from acquisition date

Withholding Tax Obligation

Buyers must retain a portion of the purchase price and remit it to LHDN:

3%, 5%, or 7% depending on the seller’s status
Payment must be made within 60 days from the disposal date
This amount acts as a prepayment of the seller’s RPGT liability

Exemption Scenario

No withholding is required if the seller provides CKHT Form 3 (Exemption Certificate)

New Update (Effective January 1, 2026)

A key enhancement introduced in 2026:

Buyers may opt to withhold based on the seller’s “deemed assessment” amount
This applies if the seller provides the calculated tax payable
It replaces the standard 3% / 5% / 7% withholding rate

This allows for more accurate tax collection and reduces the risk of under- or over-withholding.

Important Deadlines to Remember

Obligation	Deadline
Filing CKHT Forms	Within 60 days
Buyer’s Withholding Payment	Within 60 days
Seller’s Tax Payment	Within 60 days

Penalties for Non-Compliance

Failure to comply with RPGT obligations can result in significant penalties:

Late Payment Penalty: 10% increase on unpaid tax
Failure to File: Up to 3 times the tax amount
Legal Action: Possible prosecution for serious non-compliance

Why This Matters

The shift to a self-assessment system means:

Greater accountability for taxpayers
Faster processing by LHDN
Increased importance of accurate tax computation and timely submission

For both buyers and sellers, understanding these obligations is essential to avoid penalties and ensure smooth property transactions.

Final Thoughts

LHDN’s RPGT Operational Guidelines No. 2 of 2026 represents a major step toward modernizing Malaysia’s tax administration. With mandatory e-filing, strict deadlines, and clearer responsibilities, the system is designed to be more efficient—but also less forgiving of errors.

Learn More

If you are planning to buy or sell property, it is highly advisable to work with a qualified tax professional to ensure full compliance under the new rules.

Reach out to us if you need further information and assistance on RPGT.

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EPF 2026 Updates Explained: Retirement Savings, Incentives, and New Schemes

Sun, 08 Mar 2026 05:40:14 +0000

Starting 1 January 2026, the Employees Provident Fund (EPF) introduced several policy and product enhancements aimed at improving retirement adequacy, expanding social protection, and providing greater flexibility for members.

These reforms are part of Malaysia’s broader effort to strengthen long-term financial security for workers while adapting to changing employment trends, including the growth of the gig economy.

Below is an overview of the key EPF updates and how they may affect members.

1. New Retirement Savings Targets Under the RIA Framework

One of the most significant developments is the implementation of the Retirement Income Adequacy (RIA) Framework, which provides clearer savings benchmarks for Malaysians.

The framework introduces three retirement savings tiers:

Basic Savings: RM390,000
Adequate Savings: RM650,000
Enhanced Savings: RM1.3 million

These benchmarks serve as a guideline to help members better plan their retirement and determine whether their savings are sufficient to support their lifestyle after retirement.

The framework encourages members to aim for higher savings levels to achieve a more comfortable retirement.

2. Greater Flexibility for Members With Over RM1 Million Savings

EPF has also revised the withdrawal policy for members with large balances.

Members below the age of 55 who have more than RM1 million in savings will be allowed greater flexibility to manage excess funds once their retirement needs are secured.

However, the withdrawal threshold will be adjusted gradually:

2026: RM1.1 million
2027: RM1.2 million
2028: RM1.3 million

This staged approach helps members maintain sufficient retirement savings while still allowing access to surplus funds.

3. Introduction of i-Saraan Plus for Gig Workers

To support the growing gig economy, EPF has introduced i-Saraan Plus, a voluntary contribution scheme designed for e-hailing and p-hailing drivers.

Key features include:

Government matching incentive of up to RM600 per year
Lifetime incentive cap of RM6,000
Contributions facilitated through participating platform providers

This initiative aims to help gig workers build long-term retirement savings despite not being part of the traditional employment structure.

4. Extension of i-Suri Eligibility

The i-Suri programme, which supports housewives in building retirement savings, will also see improvements.

Changes include:

Eligibility age extended from 55 to 60
Government incentive continues at 50% of annual contributions
Maximum RM300 per year, with a lifetime cap of RM3,000

This extension aligns the programme with Malaysia’s minimum retirement age, allowing participants to continue benefiting from the scheme for a longer period.

5. Higher Hajj Withdrawal Limit

For members planning to perform the Hajj pilgrimage, EPF has increased the Hajj withdrawal limit from RM3,000 to RM10,000 from Akaun Sejahtera.

In addition, the previous requirement to verify savings in Tabung Haji accounts has been removed, making the application process simpler and more convenient for members.

6. New Voluntary Contribution Options

To encourage Malaysians to build stronger retirement savings, EPF has refreshed its voluntary contribution facilities:

i-Simpan – for self-contributions
i-Topup – for voluntary excess contributions beyond statutory rates

These options complement existing programmes such as i-Saraan, i-Suri, and i-Sayang, offering members more flexibility to increase their retirement savings.

7. Expanded Protection Through i-Lindung

EPF is also enhancing the i-Lindung platform, allowing members to use their EPF savings to purchase health insurance and takaful plans.

This move expands financial protection for members and promotes wider participation in insurance coverage, strengthening social protection in Malaysia.

Why These Changes Matter

The 2026 EPF reforms reflect Malaysia’s evolving workforce and economic landscape. By introducing clearer savings benchmarks, expanding protection, and improving voluntary contribution options, EPF aims to ensure that Malaysians are better prepared for retirement.

At the same time, the new initiatives also recognise emerging work patterns, particularly among gig workers, and provide mechanisms for them to participate in long-term retirement savings.

Final Thoughts

Retirement planning is becoming increasingly important as life expectancy rises and economic conditions evolve. The EPF enhancements introduced in 2026 represent a step toward strengthening financial resilience for Malaysians across different employment segments.

Members are encouraged to review their current EPF savings and consider whether additional voluntary contributions or participation in available schemes could help them achieve their retirement goals.

Tax Treatment for Retail Money Market Fund (RMMF) Distributions: What Companies and Non-Individual Investors Need to Know

Sun, 08 Mar 2026 05:18:03 +0000

The Inland Revenue Board of Malaysia (IRBM) recently issued Practice Note No. 1/2026 to clarify the tax treatment of income distributions from Retail Money Market Funds (RMMF). This clarification is particularly important for companies and non-individual investors, as the tax treatment differs from that of individual investors.

If your business invests surplus cash in money market funds, understanding how these distributions are taxed will help ensure proper tax reporting and avoid compliance issues.

What Is a Retail Money Market Fund (RMMF)?

A Retail Money Market Fund (RMMF) is a type of unit trust that invests primarily in low-risk, short-term debt instruments, such as deposits or money market instruments.

These funds are commonly used by investors who want:

A stable investment option
Better returns than traditional savings accounts
High liquidity with the ability to withdraw funds easily
Lower investment risk compared to other investment funds

Because of these characteristics, many companies use RMMFs as a temporary placement for excess cash.

Why This Clarification Matters

Under Malaysian tax rules:

Interest income received by unit trust funds may be tax-exempt at the fund level.
However, the tax treatment changes when the income is distributed to unit holders, especially non-individual investors.

The Practice Note clarifies how unit holders should report income based on the profit distribution voucher issued by the fund.

Tax Treatment of RMMF Distributions

The tax treatment depends on the type of investor.

1. Individual Investors

Income distributed from an RMMF to individual unit holders is tax-exempt.

This means individuals do not need to include these distributions as taxable income.

2. Non-Resident Investors (Non-Individuals)

For non-resident investors other than individuals:

The RMMF will deduct withholding tax before distributing income.
The withholding tax rate is 24% of the gross interest income distributed.
The amount received after withholding tax is considered final tax.

3. Resident Companies and Other Non-Individual Investors

For resident companies or non-individual investors:

The income distributed is taxable.
The RMMF will deduct withholding tax at 24% when distributing interest income.
The investor can claim the withholding tax as a tax credit under Section 110(9A) of the Income Tax Act 1967.

In many cases, this means the withholding tax offsets the corporate tax payable on the distribution.

Understanding the Profit Distribution Voucher

Each time profits are distributed, the RMMF will issue a profit distribution voucher to unit holders.

Important fields typically include:

Taxable Income – The portion of income distributed that is considered gross income for tax reporting.
Malaysian Tax – Any Malaysian tax applicable to the fund.
Foreign Tax – Foreign taxes borne by the fund that may qualify for relief.
Non-Allowable Expenses – Expenses that are not deductible for tax purposes.
Non-Taxable Income – Income that is exempt or not taxable.
Distribution Equalisation – Adjustments to equalise distributions among unit holders.
Net Payable Before Withholding Tax – The total distribution before tax deduction.
Withholding Tax Deducted – Tax withheld by the RMMF before payment to investors.

Investors should refer to the “Taxable Income” amount in the voucher when preparing their tax returns.

‼️ Important Note on “Non-Taxable Income” Classification

Some RMMFs may classify the distribution under “Non-Taxable Income” in the voucher.

However, if withholding tax has been deducted, the distribution must still be treated as taxable income under the Income Tax Act.

Therefore, investors should not assume the income is tax-exempt simply because it appears under the non-taxable column.

What Companies Should Do

Companies investing in RMMFs should:

Review the profit distribution voucher carefully
Identify the taxable income amount reported
Declare the distribution as taxable income in the company’s tax return
Claim the withholding tax deducted as a tax credit

Proper reporting ensures that the company maximises available tax credits while remaining compliant with IRBM requirements.

Need Assistance With Tax Reporting?

If your company invests in money market funds or other financial instruments, it is important to ensure the income is reported correctly in your tax filings.

Our team can assist you with:

Reviewing investment income tax treatment
Interpreting profit distribution vouchers
Preparing accurate tax computations
Ensuring full compliance with IRBM guidelines

Schedule a meeting

MADANI WANITA: Government-Backed Financing to Empower Women Entrepreneurs (MSMEs)

Fri, 06 Feb 2026 09:39:49 +0000

Access to financing is often one of the biggest challenges faced by women entrepreneurs — especially in the early stages of business growth. To support women-led micro enterprises and self-employed professionals, the Malaysian government has introduced MADANI WANITA, a financing initiative designed to empower women through affordable, accessible funding.

This programme offers government-backed loans with competitive profit rates to help women entrepreneurs strengthen their businesses and achieve long-term sustainability.

💼 Financing Details at a Glance

Under the MADANI WANITA programme, eligible applicants can enjoy:

Financing Amount: RM2,000 – RM100,000
Tenure: 1 to 7 years
Profit Rate: Flat 3.50% – 4.00% per annum
Purpose of Financing:
- Working Capital
- Capital Expenditure
- Business Renovation

This financing solution is ideal for entrepreneurs looking to expand operations, upgrade equipment, improve premises, or manage cash flow.

👩‍💼 Who Is Eligible?

The programme is open to women-owned micro enterprises, provided the business meets the following criteria:

At least 51% women ownership
Registered as Sole Proprietorship, Partnership, LLP, or Private Limited Company
Malaysian-owned business
Includes self-employed professionals such as Accountants, Doctors, and Lawyers
Business registered with SSM (CCM), Local Authority, or Professional Body
Business operating for at least 3 months

📌 Who Can Apply?

MADANI WANITA specifically supports:

B40 and M40 income groups
Women entrepreneurs
Self-employed individuals and professionals

This initiative aims to bridge financial gaps while encouraging more women to participate actively in Malaysia’s entrepreneurial ecosystem.

🌱 Why MADANI WANITA Matters

Women play a vital role in Malaysia’s SME landscape, yet many face barriers when seeking business financing. MADANI WANITA helps remove these obstacles by offering:

Affordable financing rates
Flexible repayment tenure
Support for both startups and growing businesses
Opportunities for professional women to formalise and expand their practice

Whether you’re running a small retail business, providing professional services, or building your own brand, this financing programme can be a valuable stepping stone toward growth.

📣 Apply Now – Limited Slots Available

Interested applicants can learn more and submit their application via BSN. Slots are limited, so early application is encouraged.

Apply Now

🤝 Need Help Preparing Your Application?

Before applying, ensure your business financials and documentation are in order. Proper records and financial statements can significantly improve your chances of approval.

At Adrianyeo Tax KL, we assist women entrepreneurs with:

Accounting & bookkeeping
Financial statement preparation
Tax compliance
Business advisory

Feel free to reach out if you’d like professional guidance before submitting your financing application.

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Malaysia’s New Incentive Framework (NIF) 2026: Tax Incentives for Manufacturing Investments Explained

Fri, 06 Feb 2026 09:39:49 +0000

With Budget 2026, the Malaysian Government introduced the New Incentive Framework (NIF) — a major shift in how tax incentives are granted to manufacturing investors. Instead of blanket incentives, NIF adopts a tiered, outcome-based approach, rewarding companies that contribute meaningfully to Malaysia’s economic growth, innovation, job creation, and sustainability goals.

This framework is aligned with two national strategies:

National Investment Aspirations (NIA)
New Industrial Master Plan (NIMP) 2030

The goal? To attract high-value, high-growth investments while strengthening Malaysia’s long-term economic resilience.

What Tax Incentives Are Available?

Under NIF, companies undertaking new manufacturing investments may choose one of the following incentives:

Special Tax Rate (STR)

Corporate tax rate reduced to between 0% – 15%
Valid for up to 15 years
Accumulated losses during the incentive period can be carried forward for 7 consecutive years

For projects in Less Developed Areas or qualifying small companies, special rates of up to 15% may apply.

Investment Tax Allowance (ITA)

Allowance of up to 100% of qualifying capital expenditure
Can offset 70% to 100% of statutory income
Available for up to 15 years
Unutilised allowance may be carried forward until fully used

⚠️ Note: Once an incentive option is chosen and approved, it cannot be changed.

Who Is Eligible?

Applicants must be:

Companies incorporated under the Companies Act 2016
Tax residents in Malaysia
Either new or existing companies undertaking new manufacturing projects

Eligible 15 manufacturing subsectors include:

Electrical & Electronics
Chemicals & Pharmaceuticals
Pharmaceuticals
Medical Devices
Aerospace
Machinery & Equipment (M&E)
Automotive
Petroleum Products and Petrochemicals
Oleochemicals and their derivatives
Food Production and Processing
Wood, Paper and Furniture
Textile, Apparel and Footwear
Strategic Minerals-based products
Rubber-based Products
Metal

Companies involved in biotechnology or recycled products may also qualify under relevant manufacturing categories.

How Are Incentives Evaluated?

All applications are assessed using the NIA Scorecard, which measures how well a project contributes to national priorities across six pillars:

Economic Complexity & Technology	Product sophistication, R&D spending, automation, and Industry 4.0 adoption.
High-Value Job Creation	Skilled workforce, salary levels, and Malaysian participation in managerial roles.
Domestic Linkages	Local sourcing, vendor development, training investment, and academia collaboration.
Industrial Development	Patents, R&D commercialisation, and alignment with targeted sectors.
Inclusivity	Women in leadership, employment of vulnerable groups, internship opportunities, and local workforce share.
Sustainability	Green practices, waste management, renewable energy use, and efficient water consumption.

Projects with stronger commitments receive higher-tier incentives.

Application Process Overview

Pre-consultation with MIDA
Submit application via InvestMalaysia portal
Evaluation using NIA Scorecard
Issuance of Principle Approval Letter
Annual compliance reporting throughout incentive period

Applications under this framework are accepted starting 1 March 2026.

Important: Global Minimum Tax (GMT)

Malaysia implemented the Global Minimum Tax (15%) starting 2025 in line with OECD Pillar Two rules.

Multinational groups with global revenue exceeding €750 million may be subject to a top-up tax if their effective tax rate falls below 15% in Malaysia.

This is a critical consideration when structuring investment incentives.

Why Professional Advisory Matters

NIF is highly technical and outcome-driven. Successful applications depend on:

Proper project structuring
Strong NIA scorecard positioning
Compliance documentation
Annual reporting obligations
Alignment with sustainability and workforce requirements

Early planning is essential to maximise incentives and avoid approval delays.

Need Help Navigating NIF?

At AdrianYeo Tax KL, we assist businesses with:

Incentive eligibility assessment
NIF application preparation
Tax structuring & planning
Compliance support
Manufacturing investment advisory

Schedule A Call

Stamp Duty Alert: Are You Paying More Than You Should?

Thu, 29 Jan 2026 09:26:50 +0000

In today’s business landscape, stamp duty is no longer a detail you can afford to overlook. Whether you are dealing with everyday service agreements or complex property transfers, these costs can accumulate quickly if you don't understand how and when they apply.

To help you navigate this, we have compiled a quick guide to the most common documents subject to stamp duty and their applicable rates as of6 November 2025.

📋 Common Documents & Stamp Duty Rates

Understanding these rates can help you avoid overpaying and ensure your business remains compliant.

Type of Document (Layman's Terms)	Stamp Duty Charge
Written Employment Contract (Salary > RM3,000/month)	RM10.00
Service Agreement (Single Tier)	0.1% ad valorem
Service Agreement (Multi-tier)	First level: 0.1% ad valorem; Subsequent levels: up to RM50
Tenancy / Lease Agreement	RM1 to RM7 for every RM250 of yearly rent (varies by duration)
Partnership Agreement	RM10.00
Statutory Declaration / Affidavit	RM10.00
Company Constitution	RM200.00
Business Transfer Agreement	RM10.00
General Written Agreements (Not specifically covered)	RM10.00 flat

💰 Financing & Investment

Normal Loans/Financing (RM): 0.5%.
SME or Syariah-compliant Loans: 0.05% - 0.5% ad valorem.
Shares (Listed): RM1.50 for every RM1,000 (0.15%), capped at RM1,000 per contract note.
Shares (Unlisted): RM3 for every RM1,000 (0.3%).

🔥 The Novation Debate: RM10 or Ad Valorem?

One of the most debated topics currently is Novation. The big question is whether it should be treated as a simple contract transfer (fixed RM10) or a sale of business (subject to ad valorem duty). This distinction is critical, as the difference in tax costs can be massive.

📞 Get Professional Advice

Don't let stamp duty become a hidden cost in your business. If you're unsure about your specific situation, reach out to us for expert guidance.

Get Free Consultation

Influencers, Creators & Streamers: Are You Tax-Compliant Under LHDN Guidelines?

Sat, 24 Jan 2026 06:54:45 +0000

With the rapid growth of social media platforms like TikTok, Instagram, YouTube, and live-streaming channels, more Malaysians are earning income through content creation and brand collaborations.

What many creators may not realise is this:

👉 Income earned from social media is taxable under LHDN guidelines, effective from Year of Assessment (YA) 2024 onwards.

Whether you’re earning cash, receiving free products, or monetising content overseas, it’s important to understand your tax responsibilities early — before penalties arise.

📌 Who Is Considered a Social Media Influencer?

Under LHDN guidelines, influencers are broadly categorised into two groups:

Individual Influencers	Objected-based Influencers
- Content creators and self-employed individuals - Professionals, artists and athletes - Students, homemakers, or individuals sharing daily life contents ⁉️ Whether full-time or part-time, once you build influence on social media and earn income from it, you are considered an individual influencer for tax purpose.	- Animated or carton characters - Pet social media accounts - Virtual avatars or digital personas ⁉️ Even though these influencers are not real persons, any income generated is still taxable and must be declared by the owner of operator of the account.

💰 Types of Taxable Income for Influencers

The following income streams are taxable and must be declared:

Direct payments from social media platforms (e.g. YouTube AdSense, TikTok Creator Fund, Instagram monetisation)
Brand ambassador fees and paid reviews (cash and non-cash, including free products)
Product endorsements and sponsorships
Sale of influencer accounts or social media IDs
Sale of goods (physical or digital products)
Royalties from characters, images, or digital content
Appearance fees for talks, seminars, events, or live sessions

⚠️ Important: Free products and gifts received in exchange for promotion are considered non-cash income and are still taxable.

🧾 Allowable vs Non-Allowable Expenses

Understanding what you can and cannot deduct is crucial.

Allowable Expenses (Business Portion Only)	Non-Allowable Expenses
- Internet and data charges - Filming, editing, and content production costs - Capital allowance on qualifying business equipment (as per Schedule 3 of the Income Tax Act)	- Personal expenses - Capital expenses that do not qualify for capital allowance

📂 Record-Keeping Requirements

Influencers are required to maintain proper records to support income and expense claims, including:

Payment statements from platforms
Invoices and receipts
Sponsorship emails or agreements
Records of gifts and non-cash benefits

📌 All supporting documents must be retained for at least 7 years, in line with LHDN requirements.

💸 Estimated Tax & Installments (CP500)

You may be required to pay estimated tax installments if:

You earn non-employment income, or
LHDN issues you a CP500 notice

Installments must be paid by the due dates stated to avoid penalties and late payment charges.

⚠️ Why This Matters

Many influencers only focus on content creation and overlook tax compliance — until LHDN enforcement begins. Late declarations, under-reporting income, or failing to keep records can result in:

Additional tax assessments
Penalties
Late payment charges

Getting your tax position right early helps you stay compliant, protect your income, and build a sustainable career as a creator.

📞 Need Professional Guidance?

If you’re an influencer, creator, or streamer and unsure how to:

Declare cash and non-cash income
Track allowable expenses
Handle CP500 installments
Stay compliant with LHDN guidelines

Adrianyeo Tax KL is here to help you navigate influencer taxation with confidence.

Book A Free Consultation

Personal Income Tax Relief in Malaysia (YA 2025): What You Can Claim

Wed, 14 Jan 2026 03:06:14 +0000

Filing your income tax doesn’t have to be stressful — especially when you understand the tax reliefs available for Year of Assessment (YA) 2025. Personal tax reliefs help reduce your chargeable income, which in turn lowers the amount of tax you need to pay.

Below is a summary of the key personal tax reliefs for YA 2025 that every taxpayer in Malaysia should be aware of.

📌 Important Reminder

Tax relief claims must be supported by proper documents, such as receipts, insurance statements, and official confirmations. These documents should be retained for at least 7 years for audit purposes.

💡 Need Help With Your Tax Filing?

Understanding which reliefs apply to you — and claiming them correctly — can make a significant difference in your tax outcome.

If you’re unsure about your eligibility or want help with personal tax filing for YA 2025, feel free to contact Adrianyeo Tax KL for professional guidance.

Book a free consultation

E-Invoice Phase 4: 12-Month Transition Extension & New Flexibility for Businesses (2026)

Tue, 06 Jan 2026 12:56:08 +0000

On 5 January 2026, Lembaga Hasil Dalam Negeri Malaysia (HASiL) announced important updates to the implementation of E-Invoice Phase 4, providing much-needed flexibility and additional preparation time for businesses—especially Micro, Small and Medium Enterprises (MSMEs). See LHDN's guideline here.

These updates aim to ensure a smoother and more practical adoption of e-invoicing across Malaysia.

12-Month Transition Period for E-Invoice Phase 4

Originally set at 6 months, the transition period for E-Invoice Phase 4, which commenced on 1 January 2026, has now been extended to 12 months, ending on 31 December 2026.

This extension allows businesses more time to:

Adjust internal accounting and invoicing processes
Configure systems to meet e-invoicing requirements
Ensure compliance without disrupting daily operations

Consolidated E-Invoice Allowed During Transition

Throughout the transition period, HASiL allows businesses to adopt a more flexible approach to e-invoicing:

Consolidated e-invoices may be issued for all activities and transactions
Consolidated self-billed e-invoices are permitted where applicable
Businesses may use flexible transaction descriptions in the “Product or Service Description” field
Consolidated e-invoices are allowed even when buyers request an e-invoice

Importantly, no penalties will be imposed for non-compliance during the transition period, provided these conditions are met.

Special Relief for Construction Materials Businesses

Additional relief has been granted to businesses involved in the wholesale and retail of construction materials.

Effective 1 January 2026:

Businesses may issue consolidated e-invoices
E-Invoice is only required when:
- A transaction exceeds RM10,000, or
- A buyer specifically requests an e-invoice

This measure helps reduce administrative burden, particularly for businesses handling high volumes of small-value transactions.

What Businesses Should Do Next

While penalties are waived during the transition period, businesses are strongly encouraged to:

Begin planning and system preparation early
Review current invoicing workflows
Seek professional guidance to ensure full compliance by 2027

Early preparation will help avoid last-minute challenges once the transition period ends.

How we can help?

At AdrianYeo Tax KL, we provide end-to-end support for:

E-Invoice implementation and compliance
Accounting and tax advisory
Payroll subscription services

Our team is ready to help you navigate the E-Invoice requirements with clarity and confidence.

Schedule a discussion

Important Update: Malaysia e-Invoice Threshold Has Changed — Is Your Business Ready?

Tue, 16 Dec 2025 01:57:02 +0000

We have an important announcement from LHDN regarding the e-Invoice rollout in Malaysia that could affect your business compliance planning.

LHDN has updated the mandatory e-Invoice implementation threshold, now organised into phases based on your annual turnover — giving businesses more clarity and time to prepare. This digital initiative is part of Malaysia’s tax digitalisation efforts and will become compulsory based on your revenue bracket.

Updated e-Invoice Implementation Threshold

Here’s how the new threshold works:

Annual Turnover	Mandatory From
> RM100 million	1 August 2024
RM25 million – RM100 million	1 January 2025
RM5 million – RM25 million	1 July 2025
RM1 million – RM5 million	1 January 2026
≥ RM1 million (for companies that commenced business from 2023 onward)	1 July 2026

** The deadlines above apply when your annual turnover/revenue is more or at RM1 million based on your YA2022 financials or earliest available year of assessment.

Official Guidelines & More Info

For details on compliance steps, technical specifications, and FAQs, you can view the official LHDN e-Invoice guideline here:

Download Guideline