E-Invoicing Adoption in Malaysia Accelerated by Budget Tax Incentives

Following the 2025 Budget, there is a growing discussion on rewarding compliance in Malaysia's tax ecosystem. Link4 CEO Robin Sands emphasized a shift from penalties to positive reinforcement, with tax incentives to encourage e-Invoicing adoption. Businesses can now claim accelerated capital allowances on ICT equipment, software, and consulting fees from 2024 to 2025. Sands noted that this approach fosters trust and cooperation between the government and businesses. The phased implementation of e-Invoicing, starting August 1, 2024, is coupled with a six-month grace period, allowing businesses time to comply without penalties, promoting smoother adoption and accurate reporting.

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