KTP & Company PLT

Just finished a solid Zoom session with CTIM on e-Invoicing yesterday, led by Ms Yoong Mei Sim.

Mark your calendars — 1 July 2025. That’s when Phase 3 of e-Invoice kicks in.

From my observation, many SME bosses still in “blur sotong” mode, either confused or totally unprepared.

Time is running out!

Here are my key takeaways — in plain English, Malaysian style:

  1. Penalty is real — RM200 per transaction if you mess it up. Yes, per transaction.
  2. Section 33 of ITA is getting a makeover — only proper e-Invoice can support full tax deduction in future.
  3. TIN Number is king — carian TIN on MyTax is a must. Curi TIN? Criminal offence.
  4. Small firms under big groups must comply — no such thing as too small to e-Invoice.
  5. Sole Proprietors also kena — e-Invoice is not just for Sdn Bhd.
  6. Imports? Only K1 form details needed. Keep it simple, but keep it ready.
  7. Classification Code matters — Code 006 for disbursement, 027 for reimbursement.
  8. Consolidated e-Invoice? Use Code 004 — especially during transitional period.
  9. Penalty is auto-generated — appears in MyTax portal. No more mercy letters.
  10. More

My message to all SME bosses … E-Invoice is no longer optional, and definitely not just theory.

If you delay, the cost isn’t just money — it’s compliance risk, tax deductions denied in the future, and audit red flags.

Yes, the IRB has stated that no penalties will be imposed during the six-month transitional period after 1st July 2025 — but you’re still required to submit consolidated e-Invoices during this period.

My final thought … Better to sweat now than bleed later.

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I’m Koh Teck Peng

Welcome to my blog, I’m the founder and principal of KTP & Company PLT. My journey in the accounting profession has been driven by a passion for numbers and a dedication to helping businesses succeed. With over 25 years of experience, I’ve had the privilege of working with a wide range of clients, from small startups to large corporations, providing them with the financial insight and strategic guidance they need to thrive.

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