Kuala Lumpur: The government has decided to postpone the implementation of the e-invoice system, taking into account the concerns raised by business owners, especially those from micro, small, and medium enterprises (MSMEs), Deputy Finance Minister Lim Hui Ying announced.

According to BERNAMA News Agency, the decision aims to provide more time for companies to adjust to the new e-invoice system developed by the Inland Revenue Board (LHDN). On June 5, LHDN stated that taxpayers with income or annual sales below RM500,000 would be exempt from the system for now. The implementation has been rescheduled to January 1, 2026, for businesses earning between RM1 million and RM5 million, while those with income up to RM1 million will begin on July 1, 2026.

Deputy Minister Lim explained, “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.” Her remarks came after the launch of Lebuh Cecil Public Market’s smart toilets.

Lim also highlighted that the third phase of the e-invoice implementation, starting this July 1, will involve taxpayers with income or annual sales exceeding RM5 million up to RM25 million.

Regarding the stamping of employment contracts between employers and employees from January 1, 2026, Lim noted that LHDN had not previously enforced this requirement. She stated, “Therefore, LHDN and the Finance Ministry have considered this and decided that employment contracts before January 1, 2025, will be exempted, but contracts starting on January 1, 2026, will be required to pay stamp duty.” Lim expressed hope that companies will adhere to all provisions under the Stamp Act 1949, particularly those related to stamping requirements.