Form EA is an annual income statement prepared by a company for employees’ tax submission purposes. According to the Income Tax 1967 (ITA 1967), Form EA must be given to the employees before 28th of February.
Some employers do not understand the content of Form EA due to language problems, so we have prepared Form EA in Chinese, English and Malay for employers so that employers can better fill in the Form EA.
- Bonus needs to be filled in Form EA of the year according to the payment date.
- e.g. Bonus 2021 paid after 01.01.2022 should be filled in Form EA 2022.
- Form EA (LHDN known as Form C.P.8A) is an annual income statement prepared by a company for employees’ tax submission purposes.
- Form EC is an annual income statement prepared by the government to their employees.
- Salary, benefits, pensions and other income that given by employers
- Details of the MTD deduction
- EPF & SOCSO contribution by employee
- Tax exemption allowances or benefits
- Income tax details of both employers and employees
Employers must prepare Form EA to all employees
Yes, the director is one of the employees of the company.
Yes, the director fee is the director’s income.
No, owner of sole proprietor is not considered an employee.
We suggest you prepare accordingly.
- Petrol allowance for work and Toll expenses [Limited RM6,000. If the amount received exceeds RM6,000 a year, the employee can make a further deduction in respect of the amount spent for official duties.]
- Childcare allowance [Limited RM2,400]
- Mobile phone for complimentary staff [Limited to 1 phone]
- Monthly phone bill [Limited to 1 line only]
- Perquisite (monetary or otherwise) provided to the employee pursuant to his employment in respect of past achievement award, service excellence award, innovation award or long service award. [Limited to RM2,000]
- Parking Allowance [Limited amount expended]
- Meal allowance [Limited amount expended]
- Subsidized interest for housing, education, car loan if total loan amount does not exceed RM300,000.
- The above exemption does not apply to directors, sole proprietorships, or partners in a partnership who have control of the company.
- B1(c) – Petrol allowance provided to employees in cash for personal use
- B3 – Petrol fee paid by company for employee’s personal use
- F – Petrol fee claimed by employees for business purpose [Limited RM6,000, if the amount received exceeds RM6,000 a year, the employee can make a further deduction in respect of the amount spent for official duties.]
- No need to declare in Form EA if petrol fee is paid directly by the company to the petrol station.
If he has no other business income, he should submit Form BE before 30 April.