Malaysia’s IRBM has granted stamp duty relief for employment contracts signed before 1 January 2025, with stamping required by 31 December 2025 for contracts signed during 2025. Self-assessment for stamp duty begins 1 January 2026. From that date, consolidated e-invoices are banned for transactions over RM10,000, though allowed until end-2025 unless transaction-specific e-invoices are required. The e-invoicing exemption threshold rises to RM500,000, with a 6-month deferral for businesses earning ≤ RM5 million. Phased e-invoicing starts in August 2024, with full rollout by 2027 based on revenue size.
Malaysia: Key Updates on Stamp Duty Relief & E-Invoicing
Public
Other countries
Author: Ljubica Blagojević
Category:
General information
Views:
2234
Content accuracy validation date:
03.07.2025
Content accuracy validation time:
08:17h
- Stamp Duty Relief for Employment Contracts
- Employment contracts signed before 1 January 2025 are exempt from stamp duty.
- The relief does not explicitly extend to other agreements like service or intragroup service agreements; businesses should carefully review these in light of increased IRBM scrutiny.
- For employment contracts signed during 2025, businesses have until 31 December 2025 to comply with stamping requirements.
- Companies should assess associated employment documents (e.g., increment letters) for stamp duty obligations under the Stamp Act 1949.
- Self-Assessment for Stamp Duty takes effect from 1 January 2026, so a broad compliance review is recommended beyond just employment contracts.
- Restriction on Consolidated e-Invoices
- Consolidated e-Invoices (which require less buyer data) are banned for transactions over RM10,000 starting 1 January 2026.
- Until 31 December 2025, consolidated e-Invoices remain permitted for transactions above RM10,000, except where transaction-specific e-Invoices are mandatory (e.g., motor vehicle sales, flight tickets, private charters, construction, and related materials).
- e-Invoicing Deferral and Exemptions
- The revenue threshold for exemption from e-Invoicing increases from RM150,000 to RM500,000, applicable to both incorporated and unincorporated businesses.
- If a payee is an individual not conducting business, payers must issue a Self-Billed e-Invoice (SBeI), regardless of income level.
- The e-Invoicing timeline for businesses with annual revenue ≤ RM5 million is delayed by six months.
- Updated e-Invoicing Timeline
Notes:
- During the initial 6-month phase, consolidated e-Invoices are broadly permitted but non-compliance still triggers penalties.
- The RM500,000 exemption threshold is assessed annually. If crossed, e-Invoicing applies from Year 3.
- Group companies may be excluded from exemption.
- New businesses post-2022 follow a default start date of 1 July 2026, subject to exemptions.
Analysis:
- These updates signal IRBM’s stricter oversight on both stamp duty and digital tax reporting.
- Employers and businesses must conduct comprehensive reviews, especially regarding contracts, group structures, and transaction values.
- The phased e-Invoicing rollout provides flexibility, but businesses should not delay preparations given penalties still apply during transition periods.
- Particular attention is required for fragmented payments, individual recipients, and ensuring proper issuance of SBeI where needed.
Other news from Other countries
Saudi Arabia: ZATCA Sets Rules for 24th Group in E-Invoicing Rollout
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The ZATCA has set criteria for selecting establishments in the "Twenty-Fourth Group" for electronic invoicing integration. Notifications will go to those with VAT revenues over SAR 375,000 by June 30, 2026. The second phase includes linking systems to Fatura and issuing specific invoice formats. The first phase started on December 4, 2021, requiring taxpayers to stop using handwritten invoices and... Read more
South Africa Proposes Major VAT Reforms to Modernize Tax System
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
South Africa’s 2025 draft TLAB and TALAB propose major VAT reforms to modernise the system and close compliance gaps. Key changes include extending intermediary rules to local suppliers, zero-rating silver exports and clinical trial services, exempting all basic education supplies (forcing some schools to deregister), removing low-value import thresholds, and tightening VAT registration with site... Read more
South Africa Releases VAT Draft to Advance E-Invoicing and Digital Reporting
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
South Africa's National Treasury and Revenue Service introduces e-invoicing, e-reporting, and an interoperability framework to modernize the VAT system. On August 16, 2025, South Africa’s National Treasury and Revenue Service released a draft amending the VAT Law, introducing definitions for e-invoicing, e-reporting, and an interoperability framework to modernize the VAT system. E-invoicing... Read more
New Zealand’s e-Invoicing Mandate: A Concise Overview
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
New Zealand is transitioning to e-invoicing as a standard, driven by the global Peppol Network and the regional PINT A-NZ specification. The Ministry of Business, Innovation and Employment (MBIE) oversees the adoption, with central public agencies required to receive e-invoices since March 2022. From January 2026, agencies processing over 2,000 domestic invoices annually must send and receive e-in... Read more
Malaysia Introduces 2025 Tax Reforms: E-Invoicing Rollout
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Malaysia's tax authority has introduced new tax measures and compliance requirements for 2025, including mandatory e-invoicing for taxpayers with annual income between 5 and 25 million ringgits, increased support for MSMEs, and a new tax handling branch. On August 22, the Malaysian Tax Authority published e-Bulletin No. 4/2025, which detailed a number of new tax laws and compliance standards for 2... Read more
Indonesia Reforms Digital Tax Collection for E-commerce
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Between May and July 2025, Indonesia introduced major reforms to strengthen e-commerce and digital tax collection. PERPRES-68/2025 creates a state-backed system to collect VAT on overseas digital sales, PMK-37/2025 appoints qualifying domestic and foreign platforms (PPMSE) as Article 22 income tax collectors with a 0.5% withholding on sellers’ revenue, and PER-12/2025 tightens VAT reporting and re... Read more
Colombia 2026 Tax Reform Proposal
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Colombia's Ministry of Finance proposes tax reforms for 2026 budget, aiming to raise COP 26.3 trillion, including reduced VAT rates for hybrid vehicles, increased financial sector surcharges, and reduced personal income tax. On September 1, 2025, Colombia’s Ministry of Finance submitted a tax reform bill to Congress for the 2026 budget, aiming to raise COP 26.3 trillion. The bill reforms VAT... Read more