With e-Invoice Implementation Phase 2 rolling out, businesses—including sole proprietors and partnerships—must comply if their annual revenue exceeds RM150,000.
In this article, we’ve taken the most asked questions on e-invoicing when it comes to sole prop vs partnerships, such as:
📌 How to calculate taxable income if you run both a sole proprietorship and a partnership
📌 What counts as revenue for a sole proprietor
📌 Whether partnership income is based on business revenue or partners’ profit share
This quick FAQ guide will walk you through the details so you can stay compliant and avoid LHDN penalties!
E-Invoicing for Sole Proprietors & Partnerships: Your FAQ Answered
1. Are sole proprietors and partnerships considered SMEs?
Yes. Both sole proprietorships and partnerships are business entities classified as SMEs by LHDN. This means they must comply with e-invoicing regulations if they meet the required income threshold.
2. How do I determine if I need to implement e-invoicing when I have income from both a sole proprietorship and a partnership?
- For a sole proprietorship, add up all income under your Tax Identification Number (TIN).
- For a partnership, income should be calculated separately from your sole proprietorship earnings.
Based on LHDN e-invoicing requirements:
✅ If your 2022 tax return shows a total income exceeding RM150,000, you must implement e-invoicing.
✅ If your 2022 income was below RM150,000, monitor your income from 2023-2024. If your revenue exceeds RM150,000 within any rolling 12-month period, you must start using e-invoicing immediately.
3. How do I determine my income as a sole proprietor?
Combine all income from your sole proprietorship businesses that fall under the same Tax Identification Number (TIN). If the total exceeds RM150,000, you are required to start e-invoicing.
4. For partnerships, is income based on the partner’s profit share or total business revenue?
E-invoicing requirements are based on the total annual revenue of the partnership—not the individual partner’s share of profit.
Partnerships typically submit Form P, which reports the total annual income of the business. If this amount exceeds RM150,000, the partnership must comply with e-invoicing regulations.
Watch the FAQ video:
Are you feeling confused about the LHDN e-Invoicing system?
🚨 E-invoicing Phase 3 is coming, but you don’t know how to get started?
🚨 How to choose an e-invoicing system? What’s the difference between free and paid options?
🚨 Will it affect your business and increase operating costs?
🚨 LHDN regulations are constantly changing—how can you ensure compliance?
🚨 Heard that issuing the wrong invoice could result in a fine of up to RM20,000—is it true?
Don’t let these questions stress you out!
Our E-Invoicing Course will guide you step by step to master e-invoicing, helping you navigate the new regulations with ease!
This course will help you:
✅ Resolve your e-invoicing doubts and reduce uncertainty
✅ Analyze policy impacts and plan ahead
✅ Break down the e-invoicing framework and understand future trends
✅ Learn how e-invoicing systems work to avoid business risks
✅ Discuss regulatory updates and provide practical solutions
✅ Assess whether training is needed to help your team adapt to the new system
🚀 Special Session: SQL E-Invoicing System Hands-On Demo
🔹 Complete Walkthrough – From creating an e-invoice to submitting it to LHDN, step by step
🔹 Error Prevention – Avoid common mistakes and minimize penalty risks
💡 Who Should Join?
🔹 Accountants (Freelancers & Full-time)
🔹 SME & Micro Business Owners
🔹 Anyone who wants to understand e-invoicing
⏳ Time is running out! E-invoicing isn’t something you can just “wait and see”—early preparation is key!
🎟 Limited slots available—SIGN UP NOW: https://bit.ly/42mUIFk
Your Instructor:
Course Details:
📌 E-Invoicing Course (#Mandarin):
📅 Date: 28.05.2025 (Wednesday)
⏰ Time: 9:30 AM – 5:30 PM
📍 Venue: Le Meridien Petaling Jaya
💰 Course Fee: RM 1,300 nett / person
👉🏻 SIGN UP NOW: https://bit.ly/42mUIFk
