Malaysia’s Inland Revenue Board has updated its e-Invoice Guidelines, raising the exemption threshold to MYR 3 million and clarifying group-level eligibility restrictions and implementation timelines for newly established businesses and public and international bodies.
The Inland Revenue Board of Malaysia (IRBM) has published the e-Invoice Guideline Version 4.8 on 30 August 2026. This version introduces crucial updates and clarifications regarding the implementation timeline, exemption thresholds, and group-level criteria that businesses must navigate.
One key update is the increase in the annual turnover or revenue threshold for exemption from e-invoicing requirements, from MYR 1 million to MYR 3 million, along with further clarification on the scope of the exemption.
Exemption threshold & scope of eligibility
According to the update, taxpayers with an annual turnover or revenue of less than MYR 3 million are exempted from issuing e-invoices (including self-billed e-invoices). This exemption applies across all categories of taxpayers, such as individuals, partnerships, companies, and co-operatives. For taxpayers falling below this threshold, existing receipts and standard commercial documents continue to serve as valid proof of expense for tax purposes.
Corporate relationship restrictions (exclusion from exemption)
The IRBM clarifies that eligibility for the MYR 3 million exemption is not evaluated solely on an individual entity’s turnover. The exemption is strictly disallowed if any of the following group-level conditions are met:
- Non-individual shareholders: The taxpayer has one or more non-individual shareholders (or equivalent) with an annual turnover or revenue of at least MYR 3,000,000.
- Subsidiary status: The taxpayer is a subsidiary of a holding company with an annual turnover or revenue of at least MYR 3,000,000.
- Related companies & joint ventures: The taxpayer has a related company or joint venture with an annual turnover or revenue of at least MYR 3,000,000. For this purpose, a “related company” is defined under Section 2 of the Promotion of Investments Act 1986.
Implementation timeline for newly established businesses
For businesses commencing operations between 2023 and 2025 with an annual turnover of at least RM 3 million, the compliance deadline is 1 July 2026.
For those starting from 2026 onwards, implementation is set for 1 July 2026, or their operation commencement date, whichever is later.
If a new business expects its first-year revenue to be under MYR 3 million, implementation is deferred to 1 January of the second year after they actually reach the MYR 3 million threshold.
Timeline for public and international bodies
Statutory bodies, local authorities, and international organisations are required to implement e-invoicing for transactions involving goods sold or services performed starting from 1 July 2025. Any such transactions conducted before this date are exempt from the requirement.
