Malaysia has confirmed updates to its e-Invoicing requirements, giving small and micro businesses additional time to comply, while employers must also prepare for the February EA Form deadline to ensure payroll and tax compliance. Both updates are essential for organisations managing payroll, tax and mobility in Malaysia.
Following announcements from LHDN and the Government, the mandatory e-Invoicing rollout has been postponed for businesses with annual revenue below RM5 million.
| Revenue Bracket | Mandatory e-Invoice Date | Status |
| > RM5M – RM25M | 1 July 2025 | No change |
| RM1M – RM5M | 1 January 2026 (later extended to 2027) | Postponed |
| RM500K – RM1M | 1 July 2026 | Postponed |
| Below RM500K | Temporarily Exempt | Not required for now |
February is a critical month for Malaysian employers due to the EA Form deadline. The EA Form summarises employees’ annual remuneration, including salary, allowances, benefits in kind, and statutory deductions, and is required for accurate personal income tax filing via e-Filing.
1. Verify employee information
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Full name and IC or passport number
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LHDN tax reference number
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Employment start and end dates
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Director fees, allowances and other taxable payments
2. Consolidate payroll data for the year
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Basic salary, wages and overtime
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Allowances and perquisites (taxable or exempt)
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Bonuses and commissions
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Benefits in kind, such as vehicles, accommodation or phones
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PCB/MTD deductions
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EPF, SOCSO and EIS contributions
3. Prepare EA Forms for all eligible employees
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Full time, part time, and contract staff
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Employees who joined or left during the year
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Expatriates and foreign workers
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Directors receiving fees
Rule: anyone employed for more than seven days must receive an EA Form.
4. Meet statutory deadlines
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Issue EA Forms by 28 February
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Submit Form E and CP8D to LHDN by 31 March
5. Retain complete payroll records
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Required for seven years
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Includes payslips, contracts, allowance/BIK documentation, and PCB evidence
For further detailed guidance on tax, compliance and mobility requirements in Malaysia, visit our Malaysia Global Insights on the activpayroll website.
For further guidance on managing these updates and ensuring compliance, please complete our Contact Us form and a member of our expert team will be happy to assist with your queries.