KUALA LUMPUR: The Inland Revenue Board (LHDN) will continue to provide facilities to assist small businesses in registering with electronic invoices (e-Invoice), including a free portal.

LHDN chief executive officer Datuk Abu Tariq Jamaluddin emphasised that small businesses have ample time until July 2025 to enhance their understanding of e-invoicing usage. 

"LHDN will extend full assistance to small companies, including organising meetings nationwide to explain the e-invoicing programme and its implementation at LHDN offices throughout the country," he told reporters at LHDN's raya open house here today.

Abu Tariq was responding to growing calls for micro businesses to be exempeted from the e-invoice.

E-invoices serves as a new tax management tool aiming to simplify tax processes and increase transparency.

Previously, the recent "e-Invoice Specific Guideline Version 2.1" issued by the LHDN, which requires even roadside hawkers to e-Invoice, has raised various concerns among the general public and micro, small and medium enterprises (MSMEs).

The government has been urged to clarify the implementation details in order to create a more convenient business environment rather than burdening the public.

The Small and Medium Enterprises Association of Malaysia asked the government to exempt any business-to-consumer (B2C) enterprise with revenue under RM300,000 from the upcoming e-invoice regime.

On tax evading issues, Abu Tariq said LHDN has the right to conduct raids on any individual and companies if they are identified as evading taxes.

For certain cases, he said LHDN will exercise its power if there is a need to disclose to the public.

"We will expose (cunning companies) as provided for under the law. There are cases that have been identified, but if the case has a low risk, LHDN will use audit methods.

"Every year, LHDN will identify cases involving companies that evade taxes. We will intensify efforts to ensure that they are more responsible in fulfilling their responsibilities to the country," he added.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia has one of the lowest income tax to gross domestic product ratios in the region at 11.2 per cent, compared to Singapore (12.6 per cent) and Thailand (16.4 per cent).

Anwar said LHDN had set a record for income tax collection last year, bringing in RM183.34 billion, an increase of RM7.8 bilion over the previous year.

As of December last year, 5.7 million individual taxpayers paid a total of RM40.96 billion; while 539,113 companies paid taxes totalling RM98.77 billion.

https://www.nst.com.my/business/corporate/2024/04/1044630/lhdn-assist-small-businesses-e-invoice-registration