New Tax Relief for e-Invoice Implementation
- GSK & Associates
- Apr 18
- 3 min read
Updated: Apr 21
Navigating the transition to e-invoicing just got a bit easier for Malaysian businesses. On 7 April 2026, the government gazetted two new sets of Income Tax Rules providing for Accelerated Capital Allowance (ACA) specifically to support the implementation of e-Invoices.
If you are a Malaysian resident investing in technology to meet these new requirements, here is what you need to know about the latest incentives.
1. ICT Equipment
For businesses purchasing hardware and technology tools, the Income Tax (Accelerated Capital Allowance) (Information and Communication Technology Equipment for the Implementation of Electronic Invoice) Rules 2026 offer significant relief.
1.1 Eligibility
Malaysian resident persons.
A “resident person” means:
An individual who meets the tax residency rules (e.g. stays ≥182 days in Malaysia), or
A company/entity that is considered tax resident in Malaysia (e.g. management and control exercised in Malaysia)
1.2 Eligible expenditure
Malaysian resident persons can claim accelerated capital allowance on capital expenditure incurred on the purchase of business-use ICT equipment required to implement e-invoices. This eligible expenditure includes both the purchase price and the cost of installing the equipment.
1.3 Eligible ICT Equipment
As listed in the Schedule (Rule 2) of the [P.U.(A) 162/2026]:
a. Access control system
b. Banking system c. Bar code equipment
d. Burster or decollator
e. Cable and connector
f. Computer-aided design
g. Computer-aided manufacturing
h. Computer-aided engineering
i. Card reader
j. Computer and component
k. Central processing unit
l. Storage
m. Screen
n. Printer
o. Scanner or reader
p. Accessories
q. Communication and network
r. Software system or software package
1.4 Usage
The equipment must be for business use.
2. Customised Computer Software
Recognising that many businesses require tailored solutions, the Income Tax (Accelerated Capital Allowance) (Development Cost for Customised Computer Software for the Implementation of Electronic Invoice) Rules 2026 cover software development costs incurred for the implementation of e-invoice for business purposes.
2.2 Eligibility
To qualify for this ACA, a person must meet the following criteria:
Malaysian Resident Persons: Be a resident of Malaysia for tax purposes.
Business Registration: Carry on a business registered with the Companies Commission of Malaysia (SSM), a local authority, a statutory body, or an official business registration body.
Incurred Development Costs: Incur costs for Customised Computer Software that includes:
Consultation fees.
Payments for software ownership rights.
Incidental fees related to the development of the e-invoice system.
Compliance: Adhere to the official e-invoice implementation timeline and requirements (Rules 2024 P.U. (A) 265/2024) and must not have been granted any special "flexibility" or extensions by the Director General.
2.3 Timing of Claims
Under these Rules, development costs for customised e-invoice software are treated as incurred in the basis period of a year of assessment in which such software is capable of being used in the business, regardless of when the costs were actually paid.
2.4 Effective Period & ACA Rates
Both the purchase of ICT Equipment and the development costs for the Customised Computer Software qualify for the same effective period and ACA rates:
Description | Details |
Effective Period | Year of Assessment (YA) 2024 to YA 2027 |
Initial Allowance | 20% |
Annual Allowance | 40% |
All information contained herein is summarised based on the information published at the official website of the Attorney-General's Chambers. The links to the Rules 2026 are as follows: ICT Equipment:
https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/3442657/PUA%20162_2026.pdf Customised Computer Software: https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/3442658/PUA%20163%20(2026).pdf The above blog is intended to provide a general overview of the subject matter and should not be regarded as a basis for ascertaining the tax liability in specific circumstances or as a basis for formulating business decisions. No responsibility for loss to any person acting or refraining from acting as a result of any material in this publication can be accepted by GSK & Associates. Readers should not act based on this publication without seeking professional advice.
Should you require further clarification, please do not hesitate to contact us at 03-6416 0151 or email gunalan@gskassociates.net or Manager whom you are accustomed to dealing.
Comments