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By Jason Lim, REN 84424 · IQI Realty · Checked on 14 November 2026
This guide is for owners letting homes, shops or offices in Johor Bahru and the rest of Malaysia, including owners living in Singapore. The short answer: most individual landlords do not have to issue e-invoices. LHDN exempts individuals who are not conducting a business, and letting a home without active, comprehensive maintenance services is normally not a business. Even business landlords are exempt while annual revenue stays below RM3 million, the threshold from 1 September 2026. What can change is that a company tenant issues a self-billed e-invoice to you, so tidy records matter.
Quick answer
- Individual landlords: an individual who is not conducting a business is exempt from issuing e-invoices (LHDN e-Invoice Guideline v4.8, 30 August 2026).
- Threshold: businesses with annual revenue below RM3 million are exempt from 1 September 2026, up from RM1 million (LHDN media statement, 30 August 2026).
- Business or not: letting is a business only if the owner provides maintenance or support services actively and comprehensively (LHDN Public Ruling 12/2018).
- Company tenants: if your tenant is a business inside the e-invoice system, it issues a self-billed e-invoice for the rent, not you (LHDN FAQ Q62, September 2026).
- Home tenants: a family renting your condo does not need an e-invoice; a normal receipt is enough.
- Records: keep the tenancy agreement, stamping proof, rent records, expense receipts and any self-billed e-invoices for seven years (Income Tax Act 1967, section 82).
What e-invoicing is, and where it stands in late 2026
An e-invoice is a digital record of a sale or service that is sent to LHDN’s MyInvois system and validated before it reaches the buyer. LHDN brought businesses in by annual turnover or revenue:
| Annual turnover or revenue | Start date set by LHDN | Notes |
|---|---|---|
| More than RM100 million | 1 August 2024 | Phase 1 |
| More than RM25 million, up to RM100 million | 1 January 2025 | Phase 2 |
| More than RM5 million, up to RM25 million | 1 July 2025 | Phase 3 |
| Up to RM5 million (above the exemption threshold) | 1 January 2026 | Transition extended to 31 December 2027, with consolidated e-invoices allowed and no penalties (Ministry of Finance, April 2026) |
| Below RM3 million | Exempt from 1 September 2026 | The threshold was RM1 million before that date |
In January 2026 the Prime Minister gave businesses with sales of RM1 million to RM5 million another year without penalties (The Sun, 5 January 2026), and in April 2026 the Finance Ministry extended their transition to 31 December 2027. In August 2026 the exemption threshold rose to RM3 million; LHDN said more than 1.1 million businesses would benefit. A voluntary disclosure programme also lets businesses correct e-invoice submissions without penalty until 31 December 2027 (The Edge Malaysia, 7 July 2026).
Is letting out property “conducting a business”?
This is the key question, because LHDN exempts “individuals who are not conducting business”. The e-invoice guidelines do not define the term for landlords, but LHDN’s Public Ruling 12/2018 sets out when rent is business income (section 4(a) of the Income Tax Act) or non-business rental income (section 4(d)).
- Business source: the owner provides maintenance or support services for the property, and does so both actively (personally or by hiring someone) and comprehensively (generally everything needed to maintain and manage the building and its surroundings, such as cleaning, repairs, lifts, car parks and landscaping).
- Non-business source: services are missing, partial or only come with ownership. Facilities run by a condo’s management corporation, which tenants simply use, do not count. Security alone is not enough.
Most individual owners in Johor Bahru let one or a few condos, terraces or shop units and leave building upkeep to the JMB or management corporation. That is normally non-business rental income, so the exemption applies. If unsure, ask LHDN or a tax adviser; this is general information, not tax advice. My rental income tax guide covers how the income itself is taxed.
| Your situation | How LHDN usually sees the rent | Do you issue e-invoices? |
|---|---|---|
| One or two condos let to families, building run by the JMB or MC | Non-business, section 4(d) | No. Exempt as an individual not conducting business |
| A home or shop let to a company | Non-business, section 4(d) | No. If the tenant is inside the system, it issues a self-billed e-invoice to you |
| A building you own and actively maintain yourself, with comprehensive services for tenants | Likely business, section 4(a) | Only if your business revenue is RM3 million or more, or a group condition applies |
| Property held in a company (Sdn Bhd) | Depends on the company’s activities | The individual exemption does not apply; the company checks the RM3 million test and group conditions |
When your tenant issues a self-billed e-invoice
LHDN’s Specific Guideline (v4.9, 7 September 2026) lists transactions with individuals not conducting a business as a case where the buyer issues a self-billed e-invoice. LHDN’s FAQ applies this to rent: if the individual landlord runs a business, the landlord issues the e-invoice; if not, a business tenant issues a self-billed e-invoice for the rent.
- LHDN’s own examples. A teacher who inherited vacant land and leases it to a business, with no maintenance services, is not conducting a business, so the tenant issues the self-billed e-invoice (Example 12). A company renting an office from three individual owners issues a separate self-billed e-invoice to each owner, by their agreed shares (Example 14).
- Exempt tenants do not issue them. A tenant business that is itself below the threshold is also exempt from issuing self-billed e-invoices (FAQ Q98). A small clinic or shop renting your unit will normally just pay against your receipt.
- Monthly consolidation. These self-billed e-invoices may be consolidated monthly and submitted within seven days after the month ends (Specific Guideline, sections 3.6.5 and 3.6.6).
- Utilities in your name. If the tenant cannot move the electricity or water account into its own name, the utility costs it pays you go on the same self-billed e-invoice (FAQ Q63).
- Your details. Expect the tenant’s finance team to ask for your tax identification number (TIN) or identity number.
For you, a self-billed e-invoice is a record, not a bill. Check the amount, period and your name, keep a copy, and declare the rent as usual. See also corporate tenancies and company leases.
Joint owners
Where a property is owned by several people, LHDN’s example shows one self-billed e-invoice per owner, split by the agreed shares. Keep the ownership shares in writing and make sure each owner declares their own portion. See joint names and tenancy in common.
Letting to a company in JB?
Tell me the unit and who the tenant is. I’ll help you set up the tenancy paperwork so rent, utilities and the tenant’s records line up from the first month.
WhatsApp JasonWhen a landlord falls in, or out, of e-invoicing
Falling in
- Your letting becomes a business, for example a block of shop offices you maintain and service yourself. Then the RM3 million test applies.
- All your sole proprietorships count together. For an individual, LHDN adds up the revenue of every sole proprietorship registered in that person’s name (FAQ Q102).
- Timing. If revenue reaches RM3 million in a year of assessment from 2026, e-invoicing starts on 1 January of the second year after that year (FAQ Q13). Businesses that started between 2023 and 2025 with revenue of at least RM3 million started on 1 July 2026.
- Revenue basis. Turnover comes from audited accounts where they exist, otherwise from the revenue in your tax return (FAQ Q101).
Falling out
- Stopping the services or selling the business property can take your rent back to non-business income. Keep evidence of what changed and when.
- Revenue dipping below RM3 million. LHDN’s guideline says that once your implementation date is set, later changes in turnover do not change it, so do not assume a bad year takes you out.
- Businesses between RM1 million and RM3 million that started before September 2026. LHDN’s August 2026 statement says they are not required to implement and encourages voluntary use, but it does not set out transition steps. Ask LHDN before you switch anything off.
Property held in a company
A company is not an individual, so the “not conducting business” exemption does not help it. A property-holding company can still be exempt below RM3 million, but not if a non-individual shareholder, holding company, related company or joint venture has turnover of at least RM3 million (Guideline v4.8, section 1.6.1). See buying property through a company and real property companies.
Four Johor examples
| Example | Who issues what |
|---|---|
| A Singapore-based owner lets a 3-bedroom condo in Mount Austin to a family | No e-invoice. The owner gives receipts; the family needs nothing more. |
| An owner in Iskandar Puteri lets a unit to a large company as staff housing | The owner issues nothing. If the company is inside the system, it issues a self-billed e-invoice each month or consolidated monthly. |
| An owner lets a shop unit in Bukit Indah to a small clinic with revenue below RM3 million | Neither side issues an e-invoice; both are exempt. Normal receipts and the stamped agreement are the records. |
| Siblings jointly own an office lot near JB Sentral let to a company inside the system | The tenant issues a separate self-billed e-invoice to each sibling by their shares. |
Commercial rent raises a separate service tax question; see SST on commercial rental. Overseas owners should read Singapore tax on JB rental income and managing JB property from overseas.
Records every landlord should keep
LHDN can ask you to support the rental figures in your return, e-invoices or not. Section 82 of the Income Tax Act 1967 requires records to be kept for seven years from the end of the year they relate to. One folder per property is enough:
| Record | Why it matters |
|---|---|
| Signed tenancy agreement and stamping proof | Shows the rent, term and parties. See my guide to tenancy agreement stamp duty. |
| Rent receipts or bank statements showing rent received | Supports the rental income you declare |
| Self-billed e-invoices from company tenants | Check they match the rent you received and keep them with the year’s records |
| Quit rent, assessment, maintenance and sinking fund bills | Common outgoings for a let property; see quit rent and assessment |
| Repair, insurance and loan interest records | Support expenses you claim against rent |
| Deposit records, inventory and dated photos | Support any deposit deductions at move-out; see tenant screening and inventory |
| Agent and legal fee invoices | Show what you paid to let the property |
| Purchase documents (SPA, title, stamp duty) | Needed later for RPGT when you sell |
Collect rent by bank transfer so the record builds itself, and name in the agreement the email address for any self-billed e-invoice. If you let rooms or short stays, read renting out rooms and short-stay rules in JB, since providing services can change how LHDN sees the income.
Where to buy if this matters to you
- JB Sentral and Bukit Chagar: near the CIQ and the RTS Link station.
- Mount Austin: an active rental area for condos and terraces.
- Iskandar Puteri: Medini, EduCity and the Second Link.
- Bukit Indah and Gelang Patah: established homes and shop units.
- Tebrau, Setia Indah and Molek: family neighbourhoods near malls.
- Skudai, Tampoi and Kempas: near universities and industry.
Compare them on my JB property map.
More Johor living guides: Rental income tax for resident landlords · Tenancy agreements for JB landlords · Tenancy stamp duty · The 182-day tax residency rule
Frequently asked questions
Do individual landlords in Malaysia need to issue e-invoices?
Usually not. LHDN exempts individuals who are not conducting a business, and letting a home without active, comprehensive maintenance services is normally non-business rental income under Public Ruling 12/2018.
What is the e-invoice exemption threshold in 2026?
From 1 September 2026, businesses with annual revenue below RM3 million are exempt, up from RM1 million. The exemption does not apply where a non-individual shareholder, holding company or related company has turnover of at least RM3 million.
My tenant is a company. Who issues the e-invoice?
If you are an individual not conducting a business, the company tenant issues a self-billed e-invoice for the rent, as long as it is itself inside the e-invoice system. An exempt tenant business does not need to issue one.
Do I need to give my residential tenant an e-invoice?
No. A family or individual renting your home does not need an e-invoice. A receipt or bank transfer record, together with the stamped tenancy agreement, is the usual record.
When would a landlord have to start issuing e-invoices?
Only if letting is run as a business and revenue reaches RM3 million. For a sole proprietor, all registered sole proprietorships count together, and implementation starts on 1 January of the second year after the year revenue first reaches RM3 million.
How long should landlords keep rental records?
Seven years from the end of the year they relate to, under section 82 of the Income Tax Act 1967. Keep the agreement, stamping proof, rent records, expense receipts and any self-billed e-invoices.
Letting out property in JB?
Tell me the property, the type of tenant and how you hold it. I’ll help you find and screen tenants, prepare the tenancy paperwork and keep the rent records tidy, and point you to LHDN or a tax adviser for the tax side. You can also book an appointment, or a Zoom consultation if you are abroad.
Sources: LHDN, e-Invoice Guideline version 4.8 (Table 1.1, sections 1.5, 1.6.1 and 2.3.7), 30 August 2026; LHDN, e-Invoice Specific Guideline version 4.9 (section 8.3(f), sections 3.6.5 and 3.6.6, Examples 12 and 14), 7 September 2026; LHDN, Implementation of e-Invoice in Malaysia: FAQs (Q13, Q62, Q63, Q98, Q101, Q102), updated 4 September 2026; LHDN media statement, e-Invoice exemption threshold raised to RM3 million, 30 August 2026; The Star, “Over 1.1 million businesses to benefit from higher e-invoicing threshold, says LHDN”, 30 August 2026; LHDN, Public Ruling No. 12/2018, Income from Letting of Real Property, 19 December 2018; The Sun, “E-invoicing for mid-sized firms postponed by a year”, 5 January 2026; Business Today, “Government extends e-invoice transition for mid-size companies to 31 Dec 2027”, 20 April 2026; The Edge Malaysia, “Govt announces grace period to amend e-invoices till end-December 2027”, 7 July 2026; Income Tax Act 1967 (Act 53), sections 4(a), 4(d) and 82
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 14 November 2026, not legal or tax advice. e-Invoice thresholds, dates and guidelines change; confirm your own position with LHDN (hasil.gov.my/e-invois) or a tax adviser.