Form EA: Essential for All Salaried Individuals
What is Form EA?
Form EA / Form C.P.8A is an annual statement of remuneration prepared by companies for their employees.
FORM EA records the following information for employees in the previous year:
Income
Tax-exempt income/benefits
Allowances
Monthly tax deductions (PCB)
Commissions
EPF (Employees’ Provident Fund), etc.
Who Receives Form EA?
Companies/employers must prepare Form EA for all employees, including:
Part-time employees
Local employees
Employees who left the company in the year
Foreign employees
Company directors
If it’s an agency, the company needs to prepare the CP58 form.
Form EA Deadline
Companies/employers must issue Form EA to employees by the last day of February each year.
Deadline for 2024: February 29th
Failure to comply may result in a fine of RM200-RM20,000 or imprisonment for up to 6 months, or both.
Information on Form EA
- Employee’s personal details: Name, IC number, position, dates of employment and resignation, marital status, children’s status, EPF registration number, income tax registration number, etc.
- Monthly salary details for each employee from January to December: Income, allowances, benefits, commissions, EPF, SOCSO (Social Security Organization), EIS (Employment Insurance System), monthly tax deductions (PCB).
- Benefits in kind are assets registered in the company’s name and lent to employees, including cars, phone bills, etc., which cannot be directly converted into cash.
- Perquisites are any items or cash given to employees by the company, which can be converted into money.
All salary information presented on Form EA must match the information on Form E & Form CP8D.
Frequently Asked Questions:
1. Do sole proprietors/partners need to prepare Form EA for themselves?
No, sole proprietors are not considered company employees.
2. Do companies/employers need to prepare Form EA for employees who resigned in the year?
Yes, because the employee worked for the company during the year.
3. Why do companies need to prepare Form EA for employees?
Employees can use the salary information provided on Form EA for tax filing purposes.
All terms are subject to LHDN’s approval
