Avoid Penalties: Employer’s Ultimate Guide to Tax Filing Dates in Malaysia

Missing tax deadlines can have severe monetary and non-monetary consequences, and if you are an employer, we are sure you are super wary of it. 

As an employer, you are responsible for managing your employees and reporting to the LHDN ( Lembaga Hasil Dalam Negeri) or the IRB (Inland Revenue Board) in the prescribed form and within the stipulated deadlines.

Organisations can be penalised if they miss out on the details or fail to submit these forms within the due dates. The key is to know the deadlines and manage them efficiently.

This article discusses tax filing dates in Malaysia and how employers could avoid penalties with ease by breaking down different forms, their deadlines, and penalty for missing out.

Form EA (Borang EA)

What is Form EA?

Section 83(1A) of the Income Tax Act, 1967, describes Borang EA as – “every employer shall, for each year, prepare and render to his employee statement of remuneration (Form EA) of that employee on or before the last day of February in the year immediately following the first mentioned year.”

Important things to note about Form EA

  • Borang EA is an annual remuneration statement which states your employee’s salary for the time they have worked with you in the past year. 
  • It helps employees fill their taxes diligently by letting them know their earnings accurately, enabling them to figure out the tax bracket they fall into accurately. 
  • If an employee has switched multiple jobs in the last financial year, they will have various EA forms for the same period.

Form EA submission deadline

The employer must issue Form EA to employees by 28th February of the assessment year.

Form EA late submission penalty

Non-submission of the Borang EA within the stipulated due date can lead to you having to pay between RM200 and RM20,000 or serve up to six months in imprisonment (or both).

Where can I get Form EA from LHDN?

Users can download Form E directly from the LHDN website. They can do so by clicking on there.

Form E (Borang E)

What is Form E?

Form E is an annual declaration report that an employer submits to IRB (Inland Revenue Board) or LHDN. It contains details like total employee count, number of new hires, details of the employer and the employees, and gross employee income. Company entities in the country are liable to fill out the Borang E form irrespective of whether or not they hire employees. The list includes partnerships and sole proprietors, and even dormant bodies must file the form timely.

Important things to note about Form E

  • The IRB has stopped accepting manual forms. 
  • The form has to be submitted with Form CP8D (explained below). 
  • You have to use the e-PCB system or the PCB calculator developed by LHDN.

Form E submission deadline

Employers have to submit Form E once every financial year. The last date for submission of the Borang E is 30th April of the succeeding year (year of assessment) for those who take the e-filing medium.

Form E late submission penalty

Failure to prepare and file Borang E within the allotted due date can lead to them being fined up to RM20,000 (minimum fine – RM200). In addition, they may also face an imprisonment term of up to 6 months under Section 120(1)(b) of the Income Tax Act.

Where can I get Form E from?

Given that LHDN is no longer accepting manual entries, companies have to use the MyTax portal for Form E submission compulsorily. All you have to do is log into your account and head to the Payroll section. Now, choose the Payroll Settings options and click on the Form E button. Next, click on the Generate Form E for 2023 option and select the Download Form E option to get the Form E for your business. 

Form CP8D (Borang CP8D)

What is CP8D (Borang CP8D)?

Form CP8D or Borang CP8D is a declaration report and contains details of the employer’s company and a list of remuneration paid to each employee in a financial year.

Important things to note about Form CP8D

  • Form E would be considered complete only when Borang CP8D is submitted within the stipulated due date. 
  • The employer has to complete and submit the form timely in an accepted format (Ms-Excel or txt file) for their employees.
  • Those who have used the e-Data Praisi portal for submitting information need not submit this form separately.

CP8D submission deadline

Employers must submit Borang CP8D by 31st March of the following year (assessment year). The tax department only accepts this form online; you cannot furnish it in hard copy.

CP8D late submission penalty

Form CP8D is a part of Form E, and the latter will only be considered when the employer has filed the former within the due date. So, in case you have missed the deadline, be prepared to pay anything between RM200 and RM20,000 in penalties and/or serve a jail sentence of up to 6 months under Section 120(1)(b) of the Income Tax Act, 1967.

Where can I get CP8D from?

Form CP8D is available online in Excel format. You can access the file by clicking on the link. Alternatively, you can use the format specified to create a txt file.

Form CP21 (Borang CP21)

What is Form CP21 (Borang CP21)?

If the employee who is chargeable to tax from their employment in Malaysia is leaving or intending to leave the country for over three months, their employer must file Borang CP21 or Form CP21.

Important things to note about Form CP21

  • The employer is exempted from filing Form CP21 if IRBM believes that the employee is required to leave the country frequently during their employment tenure. 
  • You can submit the form online via the e-SPC within the stipulated deadline. Alternatively, you can head to the IRB office and furnish the same manually.

CP21 submission deadline

The employer has to furnish Form CP21 at least 30 days before the expected date of their employee’s departure.

Form CP21 late submission penalty

Employers who have missed the submission of Form CP21 within the due dates can face a penalty anywhere between RM200 and RM20,000 and/or serve a jail term of up to six months.

Where can I get Form CP21 from?

Employers can download Borang CP21 directly from the LHDN official portal.

Form CP22 (Borang CP22)

What is Form CP22 (Borang CP22)?

Form CP22 is a notification of new employee form wherein the employer is responsible for informing the IRB of the new hires.

Important things to note about Borang CP22

  • It contains details of the employer, details about the new employee, monthly remuneration details, and a signed declaration. 
  • The borang has to be submitted to the IRB branch responsible for handing the employer tax (e-number) file or to your nearest IRB branch.

Form CP22 submission deadline

Form CP22 must be submitted by the employer within 30 days of employment commencement.

Form CP22 late submission penalty

If the employer fails to furnish Borang CP22 within the stipulated deadline, they will have to pay anywhere between RM200 and RM20,000 and/or imprisonment of up to 6 months.

Where can I get Form CP22 from?

Form CP22 is available to download via the LHDN official website for free.

Form CP22A (Borang CP22A)

What is CP22A (Borang CP22A)?

The Form CP22A or Borang CP22A comes into the picture when there is a cessation of a private sector taxable employee. In such a case, the employer must submit the form within the stipulated deadline to the IRB.

Important things to note about CP22A

  • The employer is exempt from filing Borang CP22A when the employee’s salary is below the minimum taxable limit. They are also exempt if the employee has been subjected to a monthly tax deduction (MTD) and is not retiring from any employment in Malaysia.
  • In addition, the employer is also required to withhold any money due to the ceasing employee and will require IRB’s permission to clear the same.

CP22A submission deadline

The employer must inform IRB and apply for SPC not less than 30 days before the employee’s termination. You can also opt for a shorter written notice if the board is satisfied that you have enough reasons to do so.

CP22A late submission penalty

The employer who fails to furnish Borang CP22A timely will have to pay a fine between RM200 and RM20,000 and/or face imprisonment of up to 6 months. In addition, they are also liable to clear the exiting employee’s outstanding tax obligations.

Where can I get CP22A from?

Those looking to download the Borang CP22A can head to the LHDN website and grab a blank copy of the form. 

Concluding remark

Recently, LHDN has become more proactive and is fining even those who missed the deadlines before. So, it is imperative for an employer to ensure that they do not miss out on the stipulated deadlines, or they will end up paying a hefty penalty.

If you wish to know more about tax submissions and deadlines, we have curated a complete list accessible by clicking on the link.

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