Budget 2026 introduces both a new tax incentive and a key compliance milestone for Malaysian SMEs. Businesses with RM500,000-RM5 million turnover can now upgrade IT systems for e-Invoice compliance while claiming 100% capital allowances within 2 years instead of 3 years.
💻 Accelerated Capital Allowance (ACA) for ICT Upgrades
To help SMEs digitalise and prepare for e-Invoice implementation, the Government has announced a special Accelerated Capital Allowance (ACA) for ICT assets.
✅ Eligible period: 11 October 2025 – 31 December 2026
✅ Applies to: ICT hardware, software, and digital infrastructure (local or imported)
✅ Claim 100% within 2 years (instead of 3 years)
- Year 1: Initial Allowance 20% + Annual Allowance 40% = 60%
- Year 2: Remaining 40%
💡 Example: RM100,000 ICT Investment
Accelerated Capital Allowance (Budget 2026):
- Year 1 deduction: RM60,000 (20% IA + 40% AA)
- Year 2 deduction: RM40,000 (40% AA)
- Total write-off period: 2 YEARS ✓
💰 The Benefit: You can fully write off the cost within 2 years instead of 3, improving cash flow and accelerating tax relief timing. That's an additional RM20,000 deduction in Year 2 compared to normal rates!
⚠️ Mandatory e-Invoice Implementation
Under IRBM's phased rollout schedule:
📅 1 January 2026 – Businesses with turnover RM1 million – RM5 million
📅 1 July 2026 – Businesses with turnover RM500,000 – RM1 million
📅 Below RM500,000 – Exempted (until further notice)
Key Requirements:
- Suppliers must issue an e-Invoice upon each transaction
- Once validated by IRBM, buyers have 72 hours to accept, reject, or request cancellation
- e-Invoices are transmitted via the MyInvois Portal or API integration
- Non-compliance may lead to penalties or disruption in invoicing
🤝 Good News: All businesses get a 6-month grace period from their respective implementation dates to ensure smooth transition.
✅ Action Plan for SMEs
1️⃣ Maximise the ACA Benefit
- Plan ICT system upgrades before 31 Dec 2026
- Replace outdated computers, software, and servers
- Enjoy faster capital allowance claims
2️⃣ Prepare for e-Invoice
- Check your turnover category and applicable deadline
- Upgrade to an e-Invoice-ready accounting system
- Train staff and test your e-Invoice workflow early
💬 Need Help Planning Your ACA Claim or e-Invoice Readiness?
Our tax advisory team can help you develop a customized strategy.
📱 WhatsApp: +60 11-2366 5233 🌐 www.kschia.com.my
Schedule a complimentary consultation today!
About KS Chia & Associates (AF 001828) "20 Years of Excellence"
📞 Office: 03-6258 3692 📱 WhatsApp: +60 11-2366 5233 📧 Email: info@kschia.com.my 🌐 Website: www.kschia.com.my
Licensed Audit & Tax Firm • Kuala Lumpur
#Budget2026 #eInvoice #ACA #SMEMalaysia #TaxUpdate #Digitalisation #KSChiaAssociates
🚀 Budget 2026: e-Invoice Compliance Meets ACA Benefit for SMEs
Budget 2026 introduces both a new tax incentive and a key compliance milestone for Malaysian SMEs. Businesses with RM500,000-RM5 million turnover can now upgrade IT systems for e-Invoice compliance while claiming 100% capital allowances within 2 years instead of 3 years.
💻 Accelerated Capital Allowance (ACA) for ICT Upgrades
To help SMEs digitalise and prepare for e-Invoice implementation, the Government has announced a special Accelerated Capital Allowance (ACA) for ICT assets.
✅ Eligible period: 11 October 2025 – 31 December 2026
✅ Applies to: ICT hardware, software, and digital infrastructure (local or imported)
✅ Claim 100% within 2 years (instead of 3 years)
- Year 1: Initial Allowance 20% + Annual Allowance 40%
- Year 2: Remaining 40%
💡 Example: RM100,000 ICT Investment
Accelerated Capital Allowance (Budget 2026)
💰 The Benefit: You can fully write off the cost within 2 years instead of 3, improving cash flow and accelerating tax relief timing. That's an additional RM20,000 deduction in Year 2 compared to normal rates!
⚠️ Mandatory e-Invoice Implementation
Under IRBM's phased rollout schedule:
| Implementation Date | Annual Turnover |
|---|---|
| 1 Jan 2026 | RM1 million – RM5 million |
| 1 Jul 2026 | RM500,000 – RM1 million |
| Exempted | Below RM500,000 (until further notice) |
Key Requirements:
- Suppliers must issue an e-Invoice upon each transaction
- Once validated by IRBM, buyers have 72 hours to accept, reject, or request cancellation
- e-Invoices are transmitted via the MyInvois Portal or API integration
- Non-compliance may lead to penalties or disruption in invoicing
🤝 Good News: All businesses get a 6-month grace period from their respective implementation dates to ensure smooth transition.
✅ Action Plan for SMEs
1️⃣ Maximise the ACA Benefit
- Plan ICT system upgrades before 31 Dec 2026
- Replace outdated computers, software, and servers
- Enjoy faster capital allowance claims
2️⃣ Prepare for e-Invoice
- Check your turnover category and applicable deadline
- Upgrade to an e-Invoice-ready accounting system
- Train staff and test your e-Invoice workflow early
💬 Need Help Planning Your ACA Claim or e-Invoice Readiness?
Our tax advisory team can help you develop a customized strategy
📱 WhatsApp: +60 11-2366 5233Schedule a complimentary consultation
No comments:
Post a Comment