Under the original plan, only those with annual revenue below RM150,000 were to be exempted. In response, the government raised the exemption threshold to cover companies with annual revenue under RM1 million. Currently, only taxpayers with annual revenue exceeding RM5 million are required to comply with e-invoicing. Reduced service tax rate: For existing SMEs, the service tax rate on rental will be cut to 6% from 8%. "At this stage, I can only reduce it to 6%, which results in an annual revenue loss of nearly half a billion ringgit.

Source: The Edge Markets January 05, 2026 05:23 UTC