What is EA Form in Malaysia?
EA Form is a statutory document that details the Statement of Remuneration from Employment. This means that it will highlight all the earnings from an employer during the tax assessment period.
With EA Form, it allows the employees to easily have a snapshot of how much they have earned during the year for accurate declarations to submit to the tax organisation in Malaysia – LHDN.
NOTE: All employers must prepare the EA Form in Malaysia for employees who have worked more than 7 days in your company – this is a requirement under the employment act. This includes all types of employees, ranging from full-time, part-time, contract to ad-hoc staff under your payroll.
Here are the items that you need to compute to fill up the EA Form in Malaysia accurately:
The EA Form does not need to be submitted to LHDN, but instead, it is required to be shared with the employee for the purpose of their tax filings. The consequences of not preparing the EA Form are a fine of up to RM20,000, imprisonment not exceeding 6 months, or both. Hence, it’s very important for employers in Malaysia to prepare this in advance to avoid late submission to employees.
To get the EA Form, you can download it from the LHDN website here.