When Must Employers Prepare EA Forms for 2023 (YA 2022)?

Disclaimer: This article should not be considered to be legal advice, and altHR is not liable for any actions taken based on this article. As of 1 July 2023, altHR no longer offers a Payroll module.

Tax season is just around the corner, which means that employers and employees are set to take the necessary steps as required by the Inland Revenue Board, also known as Lembaga Hasil Dalam Negeri (LHDN). 

For employers, preparation for tax season for Year of Assessment 2022 (YA 2022) includes preparing Form EA for your employees, as well as Form E for submission to the LHDN. Here are a couple of important facts to know if you’re an employer or HR manager in Malaysia for 2023. 

When is the deadline for Form EA? 

Employers are required to provide a statement of remuneration — the Form EA (or EA Form) — to all employees that are contracted to the organisation. The EA form contains key income information that will assist employees in filing tax return forms for the year, including: 

• Gross salary, wages, etc. 
• Fees
• Perquisites, gifts, etc.
• Income tax already borne by the employer 
• Arrears 
• Pensions
• Monthly income tax contributions (MTD/PCB) during the year
• EPF and SOCSO contributions 
• And more

Just like the previous year of assessment, the deadline for all employers in Malaysia to prepare EA forms to their employees for the Year of Assessment 2022 is the 28th of February 2023. Failure to do so will land you in hot water with the authorities — according to the Income Tax Act 1967, a fine between RM200 and RM20,000, or a jail sentence of up to 6 months, or both.

As such, it’s crucial that you prepare EA forms for your employees by the deadline. You can view a sample provided by the LHDN here. For an easier solution, scroll down to the final section of this article. 

What about Form E?

Besides Form EA, it’s also important that businesses are aware of another mandatory document to submit: Form E. Essentially, this is a report that must be submitted by the company to the LHDN that should contain the following details: 

• Number of employees
• Number of employees subject to deductions
• Number of new employees employed 
• Number of employees who have resigned
• And more 

Do note that Form E must be submitted to the LHDN via their e-PCB system, with manual submissions no longer accepted. Click here for LHDN’s sample, but the easiest way to calculate the necessary details for this form is to use one of LHDN's approved payroll software options.