PUTRAJAYA: The government is expected to announce further adjustments on e-invoice in one to two months, as the e-invoice system has entered its fourth phase, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
“The announcement might come before or on Budget Day. We are still actively evaluating the matter based on current developments,” he said.
The government is fine-tuning measures based on real-world implementation and feedback from various stakeholders. These adjustments include reviewing annual turnover thresholds, upgrading systems, expanding training, and introducing new user systems for consumers, he said.
Amir Hamzah revealed this in an exclusive interview with Sin Chew Daily and Pocketimes led by Sin Chew Daily Editor-in-Chief Chan Aun Kuang, a first for Amir Hamzah with Chinese media.
1.6 billion e-invoices uncover nearly RM5 billion in unreported income
Amir Hamzah highlighted that as the rollout of e-invoicing expands, the Inland Revenue Board (IRB) has already accumulated approximately 1.6 billion e-invoices. Analysis of these transaction patterns has revealed nearly RM5 billion in unreported income.
He added that these investigations prompted over 52,000 individuals to make voluntary disclosures, yielding more than RM1 billion in additional tax revenue for the government.
These figures demonstrate that beyond increasing tax transparency, e-invoicing helps shrink the “shadow economy” and ensures everyone legally obligated to pay taxes fulfills their responsibility.
“In Malaysia, many people who should be paying taxes aren’t doing so. This is unfair to compliant citizens who fulfill their civic duty by paying tax as required, while others manage to evade it,” he said.
Addressing concerns from small and medium enterprises (SMEs) regarding system costs, he pointed out that the government offers free IT platforms, allowing smaller businesses to adopt the system without needing to invest heavily in brand-new e-invoicing software.
“Whenever a new system is introduced, people need time to adapt. However, the government will listen to feedback from all sides, and wherever there is room for improvement, we will make adjustments,” he added.
E-Invoicing implementation timeline
Phase 1 (Aug 1, 2024): Companies with annual revenue/sales exceeding RM100 million.
Phase 2 (Jan 1, 2025): Companies with annual sales between RM25 million and RM100 million.
Phase 3 (July 1, 2025): Companies with annual sales between RM5 million and RM25 million.
Phase 4 (Jan 1, 2026): Companies with annual sales between RM1 million and RM5 million.
Local business concerns regarding the e-invoicing rollout have largely centred on technical complexities, potential cost increases, and general unreadiness.
In response, the government has exempted taxpayers with annual revenue below RM100,000 and granted a one-year transition relaxation period for businesses with annual turnover between RM1 million and RM5 million.
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