Borang EA / EA Form
Table of Contents
What is Borang EA/EA Form?
LHDN defined EA Form as an Annual Remuneration Statement for private employees, which includes their salaries for the past year. EA Form ensures that you declare the right amount of earnings and exemptions and certify whether you are above the pay grade that requires you to pay taxes.
Understanding Borang EA/EA Form
- B1 (a)-(f): Remuneration, Wages, Leave Pay, Fee, Commission, Bonus, Perquisites, Allowance, Income Tax, Gratuity
- B2: Type of income
- B3: Benefits in kind (BIK) – non-cash benefits such as the provision of accommodation, company car, driver, leave passage, and more.
- B4: Value of living accommodation (VOLA)
- B5: Refund from unapproved Pension/Provident Fund
- B6: Compensation for loss of employment
- Note: To help taxpayers who have lost their jobs due to the unprecedented pandemic, the income tax exemption limit for compensation for loss of work is enhanced to RM20,000 instead of RM10,000 for a single year of service for YA (year of assessment) in 2020 and 2021.
Generate EA Forms with Kakitangan.com
Kakitangan.com helps you to generate and distribute accurate payslips and EA Forms seamlessly.
Frequently Asked Questions (FAQ)
Kakitangan.com simplifies EA Form submission as the system captures the data for your EA Form via two places and generates an automated EA Form. First, the payroll summary you "confirm" every month; second, the Payroll->Import page where you put aggregated numbers for your employee before using Kakitangan.com .
If you have worked for more than 7 days and have received payment for it, then the EA form is compulsory for employers to provide, whether or not you're a permanent staff or a contract staff.
- The employer must notify LHDN at least 30 days before the employee's cease date if any one of the situations below is applicable:
- The employee is retiring
- The employee is leaving Malaysia permanently
- The employee is subjected to MTD (monthly tax deduction) scheme and has not had any deductions from the employer.
- The required form is Form CP22A: notification of cessation of employment.
- This process is mandatory, and failure to do so may result in a fine of RM200 to RM2000 or imprisonment for a term not exceeding 6 months.