KUALA LUMPUR (Dec 31): More than 48,000 small and medium-sized businesses have adopted e-Invois ahead of its mandatory rollout, the government said as Malaysia presses ahead with a wider digital overhaul of its tax administration.

The voluntary take-up of enterprises with annual revenue of up to RM5 million comes under Phase 4 that will take effect on Jan 1, 2026 and expand mandatory coverage to a larger base of small and medium-sized enterprises, the Inland Revenue Board of Malaysia (IRB) said in a statement.

More than 843 million e-invoices have been recorded nationwide, involving around 113,800 taxpayers, signalling growing acceptance of the system ahead of the next phase, the IRB said.

The tax authority sees e-Invois as a key initiative supporting the implementation of the 13th Malaysia Plan, particularly in strengthening digitalisation and improving record-keeping among businesses.

“This initiative helps enhance operational efficiency, strengthen orderly business record management and facilitate tax compliance in a more transparent and systematic manner,” the IRB said.

To ease the compliance burden on smaller operators, the IRB said businesses with annual revenue or sales below RM1 million are exempted from the implementation of e-Invois.

The exemption, announced earlier by the prime minister, is intended to provide more time to micro-businesses before transitioning to a fully digital tax environment.

"Nevertheless, the IRB continues to encourage all taxpayers to explore the benefits of using e-Invois as an important step towards enhancing business competitiveness through voluntary adoption," it said.

To support adoption, the IRB said it has made its MyInvois portal available free of charge to all businesses, allowing them to submit e-invoices directly to the tax authority.

Businesses using MyInvois e-POS, the IRB’s digital point-of-sale platform, from Jan 1 to June 30, 2026 will be eligible to receive a free receipt printer aimed at reducing operational and software costs.

The IRB also confirmed that Malaysia’s stamp duty administration will move to a self-assessment regime from Jan 1, 2026, under the phased implementation of the Self-Assessment System for Stamp Duty.

As part of the transition, the existing STAMPS system will be fully terminated at 6pm at the end of 2025, with all stamping matters migrated to the e-Duti Setem system in the new year.

The shift is intended to improve efficiency in stamp duty management and encourage voluntary compliance, the IRB said.

All stamping matters will be migrated to the e-Duti Setem system beginning Jan 1, 2026. Early access to the MyTax portal had been opened from Dec 17, 2025, to facilitate the transition.

To accommodate users who have yet to obtain a tax identification number or digital certificate, the IRB said existing STAMPS users may continue accessing e-Duti Setem through legacy links until June 30, 2026, for all categories of instruments.