What is EA form?
An EA form is a report of an employee’s salary and statutory contributions paid for the past year. All employers must provide each employee with their EA Form by the last day of February. It is to ensure that we are declaring the right amount of earnings and exemptions in our filing. It also can be used to check whether we are required to pay taxes.
The total of tax-free earnings must be reported is listed in the last part (Part F) of Malaysia’s most recent EA form. However, these exemptions do not apply to employees who are either sole owners or partners in partnership enterprises, or who control the company.
Guidelines on how to fill your EA Form:
It’s important to know how to fill up your EA Form. As you can see from the image from below, these are the important details you’ll need to fill in.
B1 (a)-(f): Gross Salary, Wages, Leave Pay, Fee, Commission, Bonus, Perquisites, Allowance, Income Tax, Shared Benefits & Gratuity
B2: Type of income
B3: Benefits in kind- leave passage, driver, motor vehicle etc
B4: Value of living accommodation
B5: Refund from unapproved Provident/Pension Fund
B6: Compensation for loss of employment
What is Borang E & CP8D?
Form E is used as a declaration report to let LHDN know how many people work for the company and their salary details. Employers are required to file general Form E by the end of March each year.
The E-filing submission deadline is one month after the due date. Failure to submission could result in a fine ranging from RM200 to RM20,000, up to 6 months in jail, or both. Dormant companies, limited liability partnerships, trust bodies, and cooperative societies MUST submit the form. As for Individuals (freelancers, gig workers, etc.) are not obligated to file Form E.
Here’s how you can submit Borang E
An employer must first register the Employer (“E”) file. Additionally, all PCB calculations must be performed online because LHDN no longer accepts hardcopy forms. Therefore, it will be beneficial for a business to employ an online payroll system that is Borang E-ready and PCB-compliant.
Check if a payroll programme has received LHDN approval and certification to determine whether it is truly PCB-compliant and Borang E-ready. As Borang E is a tax filing requirement in Malaysia, this is the safest approach to ensure that the payroll software you intend to use complies with those criteria. As for Form CP8D it is the return of remuneration by an employer, claim for deduction and particulars of tax deduction under the income tax rules (deduction from remuneration).
The deadline for this form is no later than 31 March.
Here are some important note you should know for form CP8D
- Employers are required to complete the form on all their respective employees for the relevant basis calendar year.
- Keep in mind that Form E will only be regarded as completed if CP8D is sent on time or before the deadline of March 31.
- CP8D must be uploaded using e-filling, or manually filing.
- According to Income Tax Act Section 120(1), failure to submit Form E is punishable by a fine of not less than RM200 and not more than RM20,000, or by imprisonment for a term not exceeding 6 months, or by both (b).
**Important Note**
With the recent upgrade of LHDN portal to MyTax, kindly be informed that Organizational e-Filing (OEF) and Administrator roles for annual taxation activities will swift to individual digital cert. In other words, all corporate taxation (C-file & E-file) is bundled into company authorizers’ personal income tax files.
All log-in to corporate taxation shall be using a personal log in ID (identification number) and personal income tax password. Please ensure you identify the company tax registered under which designated person before you can proceed with the E-Filing submission.
E filing submission due date will be on 31st March each year.
Source: https://mytax.hasil.gov.my/
MyWave can assist you in generating and submitting the Borang E, CP8D and EA Form for all your employees accurately!
Require more information?
Simply give us a call at +604 305 9600 or drop us an email at enquiry@mywave.biz!
