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Public Other countries Author: Ljubica Blagojević
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.
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Content accuracy validation date: 03.07.2025
Content accuracy validation time: 08:17h
  1. 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.
  1. 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).
  1. 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.
  1. 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.

 

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