Malaysia’s Inland Revenue Board (IRB) announced today that 52,540 taxpayers have voluntarily declared a total income of RM4.07 billion following the rollout of e-Invoicing since August 1, 2024 [1, 2, 3, 4]. These taxpayers also reported tax payable of RM1.009 billion as part of prior years’ income tax returns submitted based on e-Invoicing data.
More than 230,000 taxpayers have adopted the e-Invoicing system since its introduction nearly two years ago, resulting in the issuance of around 1.505 billion e-Invoices across Malaysia [1, 2, 3, 4]. Since January 1, 2026, all transactions involving sales of goods or provision of services exceeding RM10,000 must be accompanied by an e-Invoice. Buyers must provide their identification or Tax Identification Number (TIN) to sellers to enable accurate invoicing [1, 2, 3, 4].
The IRB has developed advanced analytics capabilities to identify anomalies and suspicious transaction patterns. Analysis revealed taxpayers engaged in large purchases over RM100,000, vehicle or asset acquisitions, and active online transactions that lacked corresponding income declarations [1, 2, 3, 4]. Despite progress, some taxpayers still do not fully comply with e-Invoicing rules, including partial e-Invoicing, late submission of consolidated e-Invoices, and failure to issue e-Invoices for transactions above RM10,000 [1, 2, 3, 4].
The IRB urges all taxpayers to ensure full compliance with the e-Invoicing requirements and to promptly correct any past non-compliant transactions. The board warned that enforcement and legal action will be taken to ensure fairness in the tax system [1, 2, 3, 4].
