Your Ultimate Guide to EA Form & Tax Filing in Malaysia for 2024

Tax filing in Malaysia can be complex, but once you have a clear understanding of essential documents such as the EA Form and key deadlines, it can simplify your process significantly.

Here’s a comprehensive guide to help you (both employers and employees alike) navigate the 2024 tax filing season.

What is the EA Form (Form CP8A)?

The EA Form, also known as Form CP8A, is a crucial document required for tax filing in Malaysia. On an annual basis, employers are required to prepare this document: it includes detailed information about employees’ salaries, bonuses, allowances, statutory contributions (such as EPF and SOCSO), and any deductions. Employers must issue the EA Form to employees no later than 29 February 2025, covering remuneration earned in the 2024 financial year.

Failure to provide employees with accurate EA forms by the deadline can result in penalties from the Inland Revenue Board (LHDN).

Why is The EA Form Important?

The EA Form is essential for employees as it contains critical information needed to complete their individual tax filing forms:

• Form BE: Used by employees who receive employment income and have no business income.
• Form B: Utilized by individuals who have additional income from business activities.

In short, the EA Form ensures accuracy in reporting income, helping avoid penalties or audits by LHDN due to discrepancies.

Key Tax Filing Deadlines in 2025:

For smooth and hassle-free tax compliance,  take note of these important deadlines:

• Form BE (Individuals without business income):
  • Manual submission: 30 April 2025
  • e-Filing submission: 15 May 2025
• Form B (Individuals with business income):
  • Manual submission: 30 June 2025
  • e-Filing submission: 15 July 2025
• Form E (Employers):
  • Electronic submission via LHDN’s e-Filing platform by 31 March 2025

What Are The Penalties for Late Submission?

Non-compliance with the tax filing deadlines or failure to issue EA Forms can result in significant penalties:

• Late issuance of EA Form: Employers may face fines ranging from RM200 to RM20,000, imprisonment, or both – according to Section 120 of the Income Tax Act 1967.
• Late submission of tax returns (Form BE/B/E): Taxpayers can incur penalties ranging from 10% to 35% of the unpaid tax, based on how overdue the submission is.

What Are The Best Practices For Payroll and Tax Compliance?

It’s crucial to ensure accuracy and timeliness in payment management. As an employer, it’s advisable to:

• Maintain meticulous records of salaries, deductions, and statutory contributions throughout the year.
• Regularly review your payroll processes and ensure statutory contributions such as EPF and SOCSO are correctly reported.

Employees are encouraged to:

• Review the EA Form immediately upon receipt.
• Promptly address any inaccuracies with the HR or payroll department.

Simplify Your Payroll with Worksy’s HRMS:

Managing payroll and tax filing doesn’t have to be complicated. Worksy’s comprehensive HR Management System (HRMS) automates payroll processes, ensuring your timely issuance of EA Forms and accurate compliance with the latest Malaysian tax regulations.

Discover how Worksy can streamline your payroll operations, enhance accuracy, and make tax compliance effortless. Book your FREE demo with us today.