What is EA Form / Borang EA?

The Borang EA or EA Form is an annual pay statement that every employee in the private sector receives. The EA form contains information on the employee's statutory contributions, wages, additional compensation, additional deductions and current reimbursements.

Why are EA forms important?

EA forms are critical to our personal income tax. When filing our income tax return, we can use the EA form as a reference to report the correct amount of annual income and deductions. We can also use the EA form to verify that we are above the salary bracket that requires us to pay taxes.

EA forms are issued by employers (businesses) to their employees. Employers must prepare and issue EA forms by the end of February each year. If an employer fails to meet this deadline, he risks a fine of RM200 to RM20,000 or imprisonment for a maximum of six months.

Employer's tax liability

What must I do if my company has hired a new employee?

As an employer, you must notify the nearest LHDN assessment office of your new hire. This must be done within the first 30 days of the new employee joining your company. Employers must use form CP22 to do this.

Failure to do so will result in a fine of between RM200 and RM2,000 or imprisonment for a maximum of six months.

What should I do if my employee retires or is terminated?

It is the sole responsibility of the employer to inform the IRBM within 30 days of the termination of EA Form Malaysia the said employee's employment under these circumstances:

• The employee has retired
• The employee has left Malaysia permanently
• The employee is subject to the MTD scheme but the employer has not yet made any deductions.

Failure to do so will result in a fine of between RM200 and RM2,000 or imprisonment of up to six months.