Form E & Form EA

Under S 83(1) & 83(1A), every employer must furnish the return (Form E) of its employees’ employment income for the year of assessment must not later than 31st March of the following year of assessment. In addition, the employer must also prepare and deliver to his employee the statement of remuneration (Form EA) on or before the last day of 28th February of the following year of assessment.

However, a grace period of 30days for Form E submission via e-filing is given by IRBM. Thus, the due date for submission of Form e-E will be on 30 April.

The IRBM has announced that all employers which are companies (including Labuan companies) are mandatory to submit Return Form of an Employer (Form E) via e-Filing for the Year of Remuneration and onwards in accordance with subsection 83(1B) of the Income Tax Act (ITA) 1967. LHDNM no longer send out Form E to the employer. Employers which are companies are compulsorily required to furnish Form E via e-Filing (Form e-E) with effect from the Year of Remuneration 2016. The e-filing program for respective year of assessment will be started on 1st March of the following year of assessment. Any Form E submitted manually will be deemed not received under subsection 83(1B) of the ITA.

Under S 120(1)(b) of the ITA 1967, any person who, without reasonable excuse fails to submit the return by employer as well as prepare and deliver the statement of remuneration shall be guilty of an offence and upon conviction, be liable to a fine ranging from RM200 to RM2,000 or to imprisonment for a term not exceeding six months or both.

Employers are required to complete Form CP8D on all their respective employees for the year of assessment. Employers who have submitted information via e-Data Praisi need not complete and furnish Form CP8D.

Please be reminded that employers are still required to complete and submit the Form E within the stipulated deadline even though the companies are dormant/have no employee. As a concession, compound on companies which are dormant or under liquidation and have yet to resolved will be withdrawn provided that the employers furnish to the IRB a written confirmation signed by the director/sole- proprietor or relevant supporting documents that the companies are dormant or under liquidation.

Please note that employers should notify the IRB if their companies are no longer active or under liquidation so that the IRB could update their records.