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:
331
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
Malaysia Expands E-Invoicing to Mid-Sized Businesses
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Malaysia’s IRB launched Phase 3 of its e-Invoicing rollout on July 1, making e-Invoicing mandatory for over 50,000 businesses with annual sales between RM5 million and RM25 million. The free MyInvois e-POS System, previously limited to micro-SMEs, is now available to businesses with sales under RM750,000 (approx. €150,900) helping SMEs simplify operations through integrated sales, inventory, finan... Read more
The Netherlands Prepares for Mandatory E-Invoicing Under EU's VIDA
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The Netherlands is preparing to implement the EU's VAT in the Digital Age (VIDA) initiative, which mandates e-invoicing for intra-EU B2B transactions from July 1, 2030. While EU rules focus on cross-border transactions, the Dutch government is considering extending mandatory e-invoicing and real-time digital reporting to domestic B2B transactions as well. Policy consultations are underway, with le... Read more
New VAT Rates Coming to Estonia
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Estonia's government confirms a VAT rate increase, starting July 1, 2025, to stabilise public finances and address the country's growing budget deficit. A VAT rate increase that will go into effect on July 1, 2025, has been formally confirmed by the Estonian government. The following adjustments will be made: The standard VAT rate will rise from 22% to 24%. The 9% lower rate will increase to... Read more
Singapore Rolls Out Phased Mandatory E-Invoicing
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Singapore’s Peppol-based e-invoicing system, launched in May 2025, is voluntary but will become mandatory in phases—starting November 2025 for new GST-registered companies and April 2026 for all new GST registrants. Businesses can use the InvoiceNow platform to transmit e-invoices and report to IRAS. E-invoicing solution providers assist with compliance, document formatting, automation, and data s... Read more
Philippines Mandates E-Invoicing for Select Taxpayers by March 2026
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The Philippines’ Bureau of Internal Revenue (BIR) will require selected taxpayers to adopt electronic invoicing and sales reporting by March 2026, following Revenue Regulations 11-2025 and the CREATE MORE law. Although e-invoicing was introduced under the 2018 TRAIN Law, full implementation has been delayed, with pilot testing starting in 2022 but showing limited progress. While the new rules are... Read more
Netherlands E-Invoicing: Preparing for Mandatory B2B by 2030
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
E-invoicing has been mandatory for Dutch public authorities since 2019, with around 1.6 million invoices exchanged annually. B2B e-invoicing is voluntary but requires buyer consent, integrity controls, and seven-year archiving. For B2G, e-invoices must be sent via Peppol using an Organization Identification Number (OIN). Common formats include SI-UBL 2.0 and Peppol BIS 3.0. From July 1, 2030, cros... Read more
Understanding Irish VAT for Business
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Irish VAT for Business applies to most goods and services, with a standard rate of 23%. Reduced rates apply to certain sectors, while zero rates apply to exports, intra-EU deliveries, and certain foodstuffs. Registration is mandatory for businesses with turnover over €75,000, and distance sales have a €10,000 threshold. Non-compliance can result in penalties. As an EU member state, Ireland applies... Read more