Special LHDN disclosure opportunities

By the Editorial Team · Friday, October 2, 2026

Over 268,000 Malaysian businesses have adopted the e-invoicing system, submitting nearly 1.9 billion invoices, while the Inland Revenue Board (LHDN) expanded voluntary disclosure programs and raised the turnover exemption threshold to RM3 million to ease compliance. These measures aim to encourage proactive tax correction, strengthen public cooperation, and enhance LHDN’s role as both a tax collector and taxpayer advisor through nationwide outreach efforts.

PUTRAJAYA — More than 268,000 businesses in Malaysia have implemented the electronic invoicing (e-invoice) system, submitting nearly 1.9 billion e-invoices for validation, according to Datuk Dr Abu Tariq Jamaluddin, chief executive officer of the Inland Revenue Board (LHDN).

Speaking at the launch of Bulan Hasil 2026 on October 1, Abu Tariq outlined the ongoing Special Voluntary Disclosure Programme (PKPS), which allows businesses to correct errors in their e-invoice submissions without facing penalties. The programme is open until December 31, 2027. He noted that the annual turnover threshold for Phase Four of the e-invoice rollout has now been increased from RM1 million to RM3 million, exempting businesses earning below this amount from mandatory implementation.

Abu Tariq highlighted several voluntary disclosure initiatives offered by LHDN to facilitate compliance, covering not only e-invoicing but also stamp duty and income tax. He urged taxpayers to come forward proactively, noting that the voluntary disclosure penalty rate stands at 15%, significantly lower than potential penalties of 45% or higher for cases uncovered through audits and investigations.

“Do not see mistakes as a reason to remain silent,” he said, encouraging taxpayers to seek guidance and make corrections promptly.

The Inland Revenue Board has also processed close to one million applications under the stamp-duty voluntary disclosure programme, enabling individuals and businesses to regularise unstamped legal documents such as tenancy agreements, loan documents, and transactional contracts. This effort complements the introduction of a stamp-duty self-assessment system, where taxpayers independently calculate and pay duties while LHDN carries out subsequent audits.

As of August 31, LHDN reported having over 7.6 million active individual tax files and more than 620,000 active company tax files. “Active files” refer to those with recent tax-related activity, including tax returns and compliance actions.

Bulan Hasil 2026, formerly known as Tax Education Month, has been expanded to encompass taxpayer guidance, enhanced services, and public engagement. Under this rebranding, LHDN aims to position itself not solely as a tax collection and enforcement agency but also as a facilitator and advisor for taxpayers.

A key component of the month-long programme is Jelajah Literasi Hasil, a nationwide outreach campaign that brings tax officers directly to communities at shopping malls, businesses, educational institutions, and other venues across 15 states and four special branches. Abu Tariq emphasised the initiative’s motto, “Lapor Sukarela, Tanggungjawab Bersama” (Voluntary Disclosure, Shared Responsibility), stressing the crucial role of public cooperation in promoting tax compliance.

“LHDN cannot possibly address every form of non-compliance without the cooperation of the public,” he said, noting that citizens can submit reports on suspected tax evasion via the e-Pelarian Cukai online platform, which ensures informant confidentiality. He urged that all information provided be truthful and accurate to contribute to a fair and trusted tax system.

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