(Kuala Lumpur, 20th) – The Second Minister of Finance, Datuk Seri Amir Hamzah, announced that to allow sufficient preparation time for small and micro enterprises, the government has decided to postpone the mandatory implementation of e-Invoicing for SMEs with an annual sales turnover between RM150,000 and RM500,000 to January 1, 2026.
During a parliamentary Q&A session, he responded to a question from Bagan MP Lim Guan Eng of the Democratic Action Party, stating that although the government has provided a grace period, SMEs are still encouraged to adopt e-Invoicing to support digitalization efforts.
“The e-Invoicing system helps SMEs systematically record sales, purchases, and document storage, thereby improving operational efficiency.”
“The implementation of e-Invoicing began on August 1, 2024, for companies with an annual sales turnover exceeding RM100 million. The second phase will commence on January 1, 2025, covering companies with an annual turnover between RM25 million and RM100 million. As of now, 25,173 companies have adopted the e-Invoicing system, with a total of 181.3 million e-Invoices issued.”
Additionally, regarding the proposal to mandate a 2% contribution to the Employees Provident Fund (EPF) for all foreign workers, Amir Hamzah explained that expanding the mandatory EPF contributions for foreign employees aims to ensure fair treatment between local and foreign workers.
“Currently, foreign workers are not required to contribute to EPF, which makes their employment costs lower than local workers. This policy will help enhance job opportunities for local workers.”
“In terms of taxation, employers’ 2% EPF contributions for foreign workers are eligible for tax deductions under Section 34(4) of the Income Tax Act 1967, with a cap of 19% of the total employee wages, regardless of citizenship status.”
Source: https://www.orientaldaily.com.my/news/nation/2025/02/20/713860?source=lead
