(Tax Update) Form E & EA in Malaysia: What Every SME Employer Needs to Know

(Tax Update) Form E & EA in Malaysia: What Every SME Employer Needs to Know

As an SME owner, keeping up with tax compliance can be overwhelming. One key responsibility is preparing Form E and Form EA, which are mandatory submissions for employers in Malaysia. Missing deadlines or making mistakes could lead to unnecessary penalties.

But don't worry—we’ve got you covered with useful insights from our past blogs! Even though these blogs were published in the past, they remain relevant under current laws and regulations.

What is Form E & Form EA?

  • Form E – An annual declaration submitted by employers to LHDN, listing details of all employees and their remuneration.

  • Form EA – A statement given to employees summarizing their annual earnings and deductions, essential for personal tax filing.

Key Deadlines for Form E & EA Submission

  • Form EA – Must be given to employees by 28 February each year.

  • Form E – Must be submitted to LHDN by 31 March (via e-Filing).

Common Mistakes & How to Avoid Them

  1. Errors in Reporting Benefits-In-Kind (BIK)
    Many employers misreport or completely overlook BIK when preparing Form EA. Not sure how to declare company cars, housing allowances, or other perks? Read our breakdown:
    👉 Common Mistakes in Form EA: Benefits-In-Kind (BIK)

  2. Misunderstanding Form E Requirements
    Is your company required to submit Form E? What should be included? Get answers to the most frequently asked questions here:
    👉 Top 10 FAQs on Form E 2021

  3. Incorrect Reporting of Living Accommodations in Form EA
    Providing accommodation for employees? Learn how to report it correctly and avoid unnecessary tax complications.
    👉 Common Mistakes in Form EA: Benefits-In-Kind

  4. Unclear About the Submission Deadline?
    Don’t wait until the last minute! Form E is due on or before 31 March, and Form EA must be given to employees by 28 February each year. More questions? Check out our FAQ:
    👉 Form E FAQ

How to Submit Form E via e-Filing for Employers

LHDN requires employers to submit Form E electronically through the e-Filing (e-CP8D) system. Here’s how:

  1. Log in to MyTax Portal using your company’s credentials.

  2. Select e-Filing > e-CP8D.

  3. Fill in the required details, including employee salary information.

  4. Double-check for accuracy and submit before the deadline.

  5. Save the submission receipt for record-keeping.

Dormant Company without Employee

Yes, a dormant company without employees must still file Form E as a NIL declaration by 31 March via e-Filing, or risk penalties under Section 120(1)(b) of the Income Tax Act 1967.

Final Thoughts

Staying compliant with Form E & EA is crucial for every SME. The key is accuracy and timely submission.

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