KSKUAN & CO.

🚨UPDATE: SMEs with RM1–5 million turnover given 6–12 months grace period to comply with e-invoicing without penalties.

🚨更新：营业额在100万至500万零吉的中小企业获得 6至12个月宽限期，可在此期间落实电子发票而不受处罚。

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#电子发票 #中小企业

Congratulations to the JDT football team on their victory in the Piala FA final.
Please be informed that KSKUAN & CO will be closed in conjunction with this special holiday and will resume normal operations on Tuesday, 16 December 2025.

祝贺JDT足球队在足总杯决赛中取得胜利。
KSKUAN & CO将配合此特别假期暂停营业，并于2025年12月16日（星期二）恢复正常运营。

📌 Implementation Timeline

1. Companies that start operating on or before YA2022
✅ If not meeting the exemption criteria, implementation commences from 1 July 2026
✅ If YA2022 annual turnover is below RM1 million, at which stage should e-Invoicing be implemented?
- If annual revenue exceeds RM1 million between YA2023 and YA2025, implementation commences from 1 January 2026
- If revenue exceeds RM1 million in YA2026 or later, implementation commences from 1 January of the year following the tax year in which the threshold is reached.

2. Companies commencing operations between YA2023 and YA2025
✅ If annual revenue exceeds RM1 million between YA2023 and YA2025, implementation must commence from 1 July 2026.
✅ If annual revenue remains below RM1 million and all exemption criteria are fully met, full exemption applies.
✅ If annual turnover exceeds RM1 million in YA2026 or subsequent tax years, mandatory e-invoicing commences on 1 January of the second year following that tax year.

3. Companies commencing operations in YA2026
✅ If annual turnover reaches or exceeds RM1 million in YA2026, e-invoicing commences in the second year of that tax year (1 January 2028).
✅ If turnover does not exceed RM1 million in YA2026, taxpayers are exempt from implementing e-Invoice..

📌 Who qualifies for e-Invoice exemption?
All taxpayers engaged in commercial activities must implement the e-Invoice system according to their respective phases, unless fully exempted (including self-billed invoices) by meeting the following criteria:
✅ Annual turnover < RM1,000,000
✅ No corporate shareholders
✅ Not a subsidiary
✅ No associated or joint venture companies.

📌 Who is ineligible for exemption
✅ Non-individual shareholders (or equivalent beneficial owners) with annual turnover or income of at least RM1,000,000
✅ Subsidiaries of holding companies with annual turnover or income of at least RM1,000,000
✅ Affiliated companies or joint ventures with annual turnover or income of at least RM1,000,000.

📌 Where multiple Enterprises are held, turnover must be aggregated
For sole proprietorships, the requirement to implement e-Invoice is determined by aggregating the total annual turnover or income across all sole proprietorships under the same name to assess whether the RM1,000,000 threshold is met.

📌 How is annual turnover determined?
The criteria are as follows:
✅ With audited financial statements: The annual turnover stated in the [Consolidated Income Statement] of the relevant audited financial report shall prevail.
✅ Without audited financial statements: The annual income declared in the tax return for the relevant tax year shall prevail.
✅ Regardless of whether audited statements exist, the implementation of e-Invoice is required if the turnover for the relevant year reaches RM1 million.

Selamat Hari Merdeka to all Malaysians!

From KSKUAN & Co.