“My company earns less than RM150,000, no need for e-Invoice.”
“I have a few sole proprietorships, each below RM150,000 – should be exempt.”
“We’re just a small company in a big group, our revenue only RM90,000.”

These are common misunderstandings and they’re wrong.

Yes, LHDN gives e-Invoice exemption for businesses with annual revenue below RM150,000.

But the exemption is based on your latest available financial year (usually 2022 or 2023 accounts or tax returns).

And it comes with conditions.

You are not exempt if:

• Your company has a corporate shareholder who earns above RM150,000
• You are a subsidiary or related company of a group earning above RM150,000
• You are in a joint venture or associate company with more than 20% shareholding
• You are a sole proprietor with combined revenue across multiple businesses exceeding RM150,000

Many SMEs only realise this when it’s too late.
Check your structure, know your shareholders, and review your past revenue.

Read the full content in our blog
https://www.ktp.com.my/blog/e-invoice-exemption-150k/03june2025