Malaysia Introduces 2025 Tax Reforms: E-Invoicing Rollout

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 2025.

Main highlights include:

Growth of e-invoicing

Taxpayers earning between 5 million and 25 million ringgits (roughly USD 1.1 million to USD 5.9 million) annually will be subject to the mandatory e-invoicing regime as of July 1, 2025.

Assistance to MSMEs

The minimum income required to use the free POS platform has been raised from 250,000 ringgits (about USD 59,427) to 750,000 ringgits (about USD 178,282).

A new branch that handles taxes for foreign taxpayers

The Foreign Taxpayer Branch (CPCA) will take care of the following that started on May 2, 2025:

• Filings by non-resident taxpayers
• Issues with foreign taxpayers' withholding taxes

Malaysia's larger initiatives to enhance digital tax administration and boost compliance among resident and non-resident taxpayers include these updates.