Key Takeaways
- To submit E Form is an essential declaration to inform LHDN of a company’s total employees and income information.
- Every employer (with or without employees) must submit the E Form to LHDN.
- Failure to submit the E Form may result in a fine of not less than RM200 up to RM20,000, imprisonment for up to six months, or both.
- Companies can only submit their Form E online through the LHDN MyTax portal (e-Filing), while non-companies can choose to submit via postal, walk-in delivery or online.
- An active e-Filing account is necessary for companies to submit Form E online through the MyTax portal.
During tax season in Malaysia, employers face the important task of managing their tax responsibilities. One example is to submit E Form to Lembaga Hasil Dalam Negeri Malaysia (LHDN).
This crucial step involves submitting electronic forms detailing their employees’ earnings and deductions.
In this article, we explore how employers can seamlessly submit E Form to LHDN, ensuring compliance and accuracy in their tax filings.
What is Form E in Malaysia
As an employer in Malaysia, you are obligated to submit Form E/Borang E (also known as CP8D) to the LHDN.
This form is a crucial declaration that plays a significant role in the nation’s tax administration. Let’s break down what Form E is, what it entails, and the importance of its timely submission.
Form E is essentially a detailed report that provides the LHDN with important information, including:
- Total number of employees in the company
- Total number of newly hired employees
- Detailed information of the employer
- Detailed information of all employees, including interns.
Comprehensive income details of employees, including:
- Employees with annual gross remuneration of RM34,000 and above.
- Employees with monthly gross remuneration of RM2,800 and above, including bonuses.
- For employees earning below the stipulated amount, insert “0” in Part A of the employee data section.
It’s important to note that every employer in Malaysia, regardless of the size or nature of the business, must submit E Form. This includes:
- Public limited companies (Berhad)
- Private limited companies (Sdn Bhd)
- Sole proprietors
- Partnerships
- Trust bodies
- Cooperative societies
- Dormant and non-performing companies
Failing to submit Form E can lead to serious legal and financial consequences. Employers may face a hefty fine ranging from RM200 to RM20,000, imprisonment for up to six months, or both.
Therefore, ensuring the submission of this form is not just about compliance, but also about safeguarding your business from legal repercussions.
When it comes to the submission process, companies must submit their Form E online through the LHDN MyTax portal (e-Filing).
The deadline for this submission is generally set for 31 March, with a grace period until 30 April.
On the other hand, non-company entities have the flexibility to submit either manually through postal or walk-in delivery or online via e-Filing.
Read More: What is the Cost of Starting a Business in Malaysia?
What are the Steps to Submit E Form to LHDN in Malaysia
For companies in Malaysia, having an active e-Filing account is crucial for submitting various tax documents.
If this is the first time your company is undertaking this process, it’s important to register for an e-Filing account well in advance of the e-Filing period.
1. Submission of e-Data Praisi/e-CP8D
Employers using a payroll software can automatically generate the CP8D form and upload it online.
Notably, the deadline for this process typically falls at the end of February, but the exact date should be confirmed annually with LHDN.
In case the deadline is missed, employers still have an option to submit their CP8D form. This can be done by emailing the form as a text or Excel file to LHDN at the provided email address ([email protected]).
Here are the steps for e-CP8D submission:
a. Employers need to log into the MyTax portal (mytax.hasil.gov.my) using their Identification Card Number and password.
b. Within the portal, select ezHasil Services and then choose e-Data Praisi/e-CP8D to proceed.
c. Enter your Employer Number and confirm the company name.
d. Then, you can choose to upload your CP8D from your payroll software (Method 1), or manually enter the employees’ details one by one in the online form (Method 2).
- Method 1: Upload CP8D from payroll software
- Select the ‘Upload CP8D’ option.
- After uploading the file, all employee information should be filled in automatically.
- Method 2: Manual Entry
- Select the option ‘Submission of CP8D (through online form)’.
- Choose the year of remuneration and click Search.
- Enter your employees’ details one by one.
e. Update your employer declaration and select ‘Confirm & Submit’.
f. After submission, you’ll be directed to an acknowledgement page. Here, you can choose the Print Confirmation option to save a copy for recordkeeping.
2. Submission of E Form via e-Filling
a. Log into the MyTax portal (mytax.hasil.gov.my) using your Identification Card Number and password.
b. Once logged in, click on ‘ezHasil Services’ and select the ‘e-Filing’ option.
c. Choose e-From, and specify the tax year under the section labelled ‘e-E’.
d. Enter your company’s income tax number to proceed with the filing.
e. Within the “Return of C.P.8D” section, choose one of the following:
- “via e-Data Praisi/e-CP8D” (if you completed the earlier submission) and click “Next”
- ‘”With Form E” if the company is inactive, winding up or has no employees
- “Via e-mail to [email protected]” if you are submitting CP8D after 1 March via email to LHDN, and did not submit the e-Data Praisi/e-CP8D before the February deadline
f. Complete the total employee details and click ‘Next’.
g. For employers who chose “With Form E”, you will then be directed to the CP8D form.
h. Employers are required to manually enter all staff (including director) payroll information such as name, tax number, NRIC or passport number.
i. You may put zero (0) for whichever column that is not applicable to your employees. Click ‘Save’ to proceed.
j. Employers who chose “Via e-Data Praise/CP8D” and “Via e-mail to [email protected]” can skip the manual entry step above.
k. Employers must then enter their designation to digitally sign the form and submit the E Form to LHDN.
l. After submission, print the acknowledgement and e-E Form to keep a record for future reference and verification.
m. If you selected the option to email the CP8D to LHDN during the e-Filing of the E Form, you should now email the Excel or text file of the CP8D from your payroll software to [email protected].
Take note that employers must use the same email address for this submission as the one listed in the company’s Employer Profile section.
Read More: What You Should Know About Personal Financing in Malaysia
How Bluebricks Can Help Employers
The task to submit E Form is critical for every business, and choosing the right method hinges on your company’s specific needs and circumstances.
At Bluebricks, we can help you review your financing options to ensure your approach is in sync with your business tax strategy.
Trusted by a multitude of clients, Bluebricks provides an extensive range of financial services to support your company’s short-term and long-term goals, which include:
- Personal loan services
- SME loan services
- Mortgage loan services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
Customised Loan Consultancy Services
Whether you’re seeking business funding or navigating complex cash flows, we offer tailored advice for a loan option suitable for your unique needs.
When recommending a suitable financial product, our team carefully considers the following:
- The specific loan amount you require.
- The urgency with which the loan amount is needed.
- Whether you or your parents own a property that has been held for over ten years.
- Your income level.
- Your CTOS score (such as your credit score and credit history).
Submit E Form – FAQs
This guide is tailored to assist employers in understanding the process, requirements, and best practices for successful E Form submission to LHDN.
We hope to clarify your doubts with our answers to commonly asked questions about submitting the E Form in Malaysia.
Typically, the deadline for submitting the E Form is by the end of April.
However, it is advisable to check the specific deadline for the current year on the LHDN website or through official communications, as it may vary.
You can still submit the E Form after the deadline, but it may be subject to late submission penalties.
Failure to submit the E Form may result in serious consequences, and employers may be fined from RM200 to RM20,000, face imprisonment for up to six months, or both.
LHDN no longer accepts manual or paper submission of E Form, with the exception of non-company entities.
As such, under subsection 83(1B) of the Income Tax Act 1967 (ACP 1967), LHDN has the right not to accept the submission.
Yes, even if your company had no employees during the year, you must submit the E Form to declare this status.
The form allows you to indicate that there were no employee earnings for the year.
