If you’re buying equipment or software for e-Invoice, there are two separate developments to understand: existing accelerated capital-allowance rules and an announcement to shorten the claim period further.
The existing rules provide a two-year pattern for qualifying expenditure. The announced one-year enhancement for years of assessment (YA) 2026 and 2027 is still marked as awaiting a gazette order in HASiL’s FAQ checked on 24 September 2026. You can assess the existing rules without assuming the enhancement is available.
Which rules are already documented?
P.U.(A) 162/2026 covers specified information and communication technology (ICT) equipment for e-Invoice, including installation. Its schedule includes computers and software systems or packages. P.U.(A) 163/2026 concerns development costs for customised e-Invoice software. These links are copies of the Federal Government Gazette hosted by Moore; HASiL independently identifies both rules in its FAQ.
Both rules cover YA2024–YA2027 and provide a 20% initial allowance and 40% annual allowance, subject to their conditions. For customised development, rule 3(2) of P.U.(A) 163 treats the cost as incurred in the basis period when the software can be used for the business; paying a deposit does not by itself settle that timing.
Keep these measures separate:
| Measure | Verified position | What to do with it |
|---|---|---|
| Two-year allowances under P.U.(A) 162/2026 and 163/2026 | Gazetted on 7 April 2026; 20% initial allowance and 40% annual allowance | Assess expenditure against the relevant rule’s conditions |
| Announced one-year enhancement for YA2026–2027 | Gazette order pending in the reviewed FAQ | Verify the implementing order before relying on the enhanced treatment |
The one-year enhancement was announced on 7 July 2026. Question 24 of the General e-Invoice FAQ, printed pages 14–15, still describes its gazette order as pending. The April rules do not establish the announced one-year treatment.
Check eligibility before calculating an allowance
The existing rules require Malaysian residence, a registered business, qualifying expenditure and compliance with the specified e-Invoice timeline and issuance requirements. They also require that the claimant has not been granted the relevant flexibility in e-Invoice issuance. Using e-Invoice does not automatically establish eligibility; have any relaxation or exemption history assessed.
Each rule contains exclusions for overlapping deductions, allowances or incentives on the same cost. Match the item to the applicable rule before claiming it, and do not assume that a subscription or staff-training charge qualifies merely because it appears on the same invoice.
What is a capital allowance?
A capital allowance is part of the tax treatment of qualifying capital expenditure. It isn’t the same as accounting depreciation, and it isn’t a cash grant paid back to the business.
The effect of a claim depends on the expenditure qualifying, the applicable rate and timing, the taxpayer’s position and the interaction with other rules. A faster allowance may change when a deduction is recognised, but it doesn’t make the purchase free.
What can you do now?
If you’re budgeting for an e-Invoice system, make the commercial decision based on what the business needs. Treat the potential allowance as an item to verify, not the only reason to buy.
Keep:
- supplier quotations and final invoices;
- contracts and licensing terms;
- payment records;
- purchase, installation and ready-for-use dates;
- descriptions of hardware, software and implementation work;
- an explanation of business use; and
- records of any grant, reimbursement or other tax treatment considered.
Separating the components helps your adviser assess the existing rules now and revisit any later change without reconstructing the purchase.
Fictional case study: what a two-year allowance actually means
A Malaysian-resident company buys RM8,000 of qualifying ICT equipment and pays RM2,000 for its installation for e-Invoice. In this fictional example, an eligibility review establishes that all RM10,000 qualifies under P.U.(A) 162/2026 for YA2026. The equipment is owned and used for the business, all compliance conditions are satisfied, no disqualifying flexibility has been granted, and no overlapping deduction or incentive applies.
Assume the equipment remains in qualifying use through YA2027, with no disposal or other adjustment. The allowance schedule is:
| Calculation | YA2026 | YA2027 |
|---|---|---|
| Initial allowance: 20% of RM10,000 | RM2,000 | — |
| Annual allowance: 40% of RM10,000 | RM4,000 | RM4,000 |
| Allowance for the year | RM6,000 | RM4,000 |
| Qualifying cost remaining after allowances | RM4,000 | RM0 |
The second annual allowance is calculated on the original qualifying cost, not 40% of the remaining RM4,000. Across the two years, the allowances total RM10,000. That is the cost available for the allowance calculation, not RM10,000 returned in cash. Whether and when it reduces tax payable depends on the company's income and tax position.
Decision: pay and budget for the RM10,000 purchase, keep the verified two-year schedule, and do not substitute a full first-year claim merely because of the July announcement. The adviser would reassess the schedule if a later implementing instrument changes the applicable treatment.
The owner now understands both the purchase cost and the allowance timing. Your own eligibility must be established before copying the numbers. If you’re still choosing a system, compare the documented functions and limits in the MyInvois e-POS guide.
What would change the one-year status?
Before using the enhanced treatment, obtain its implementing instrument and confirm:
- which taxpayers qualify;
- the exact expenditure and assets covered;
- the relevant purchase, installation or use dates;
- exclusions and documentary conditions;
- the allowance percentages and timing;
- how subscriptions and implementation costs are treated; and
- how the measure interacts with other allowances, deductions or incentives.
Don’t fill those gaps by assuming that every laptop, subscription or system cost connected with e-Invoice will qualify.
Use a status tracker
| Item | Status or evidence |
|---|---|
| Policy announced | Record the official announcement and applicable YAs |
| Gazette order issued | Insert the order only when verified |
| Qualifying expenditure checked | Match each cost to the final legal conditions |
| Dates and documents checked | Retain invoice, payment and use evidence |
| Claim computation reviewed | Have the final treatment checked before filing |
This simple tracker prevents an announcement from being mistaken for a completed tax analysis.
What should the business decide today?
Choose technology because it fits your transaction volume, staff workflow, customer needs and accounting process. Ask your adviser to assess the existing rules against the actual expenditure and compliance history, and preserve the records supporting that conclusion.
The useful distinction is between an established allowance calculation and a later announced enhancement. Keep them separate in your budget and tax working papers.
Sources checked on 24 September 2026 against HASiL’s FAQ and the text of P.U.(A) 162/2026 and 163/2026. The worked example applies the existing two-year rules under explicit eligibility assumptions. The FAQ still marked the one-year enhancement as awaiting a gazette order; it is not used in the calculation.
Sources referred to in this guide (4)
We’ve taken reasonable steps to verify the cited sources and check this information as at the source-check date. We can’t guarantee 100% accuracy, completeness or that it remains up to date. This is general information and does not replace professional accounting, tax or legal advice tailored to your circumstances. How these guides were prepared.