Micro SMEs with annual earnings under RM150,000 are exempt from e-invoicing – Amir Hamzah

KUALA LUMPUR: Finance Minister II Datuk Seri Amir Hamzah Azizan stated that MSMEs with annual earnings below RM150,000 are not required to issue e-invoices. “For now, traders with yearly sales under RM150,000 are exempt from e-invoicing. However, the government encourages small traders to join the e-invoicing initiative to support national business digitalization,” Amir Hamzah said…

Micro SMEs with annual earnings under RM150,000 are exempt from e-invoicing – Amir Hamzah

KUALA LUMPUR: Finance Minister II Datuk Seri Amir Hamzah Azizan stated that MSMEs with annual earnings below RM150,000 are not required to issue e-invoices. “For now, traders with yearly sales under RM150,000 are exempt from e-invoicing.

However, the government encourages small traders to join the e-invoicing initiative to support national business digitalization,” Amir Hamzah said during Parliament’s Question Time on Tuesday (July 2). He recognized the challenges MSMEs face, including higher operating costs, IT upgrades, and a lack of e-invoicing knowledge.

Therefore, the government permits MSMEs to issue consolidated e-invoices, digital receipts that combine monthly sales transactions. “These e-invoices must be submitted to the Inland Revenue Board (LHDN) within the first seven days of the month,” he added.

The MyInvois portal is available to MSMEs for e-invoicing at no extra charge. Additionally, tax incentives will be provided for those developing their systems or using a solutions provider, including a reduced capital allowance claim period from four years to three years for device and software purchases starting in the 2024 assessment year. “A tax break of up to RM50,000 per assessment year will be given for consultation fees from 2024 to 2027,” he said.

The government will support all companies, including MSMEs, in e-invoicing implementation through an “educate and correct” approach. Starting August 1, taxpayers with annual turnovers over RM100 million must adopt e-invoicing. Businesses earning between RM25 million and RM100 million must implement it by January 1 next year. By July 1 next year, all other businesses, including SMEs, hawkers, and traders, must adopt e-invoicing.

Reference:

  1. Bernama
  2. The Star

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