Malaysia Mandates E-Invoicing, Unveils E-Invoicing, ESG, … Incentives

Tax highlights of Budget 2024 and Finance (No. 2) Bill 2023

• Starting from 1 January 2024, the Malaysian government will gradually implement e-invoicing for all taxpayers engaged in commercial activities. The goal is to support the digital economy and improve tax administration and management efficiency. This requirement applies to individuals and legal entities, including those subject to the LBATA or the Petroleum (Income Tax) Act 1967. Taxpayers with an annual turnover or revenue exceeding MYR 100 million will be the first group required to adopt e-invoicing, starting from 1 August 2024. The Inland Revenue Board (IRB) has issued guidelines to provide guidance and clarifications on e-invoicing implementation. A software development kit with API configuration specifications is expected to be released by the end of 2023. The mandatory implementation timeline is as follows: taxpayers with an annual turnover or revenue exceeding MYR 100 million (as stated in the audited financial statements for the financial year 2022) must implement e-invoicing by 1 August 2024; taxpayers with an annual turnover or revenue between MYR 25 million and MYR 100 million must implement e-invoicing by 1 January 2025; and all other taxpayers must implement e-invoicing by 1 July 2025.
• A tax deduction would be available for four years (from YA 2024 to YA 2027) for the following expenditure (up to MYR 50,000 for each YA) in relation to environmental, social, and governance (ESG) activities, to encourage more companies to comply with ESG standards:
  • Consultation fees for implementing e-invoicing incurred by MSMEs; and
  • …

Source Deloitte

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• See also Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological

• Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE

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