Tax Guide: What you need to know about “Form E”

July 28, 2022
Posted by Jerico Tan

Tax season is upon us again so here’s a quick tax guide on what’s Form E all about and some other information you need to know:

1. What is “Form E”?

Put simply, Form E is an annual declaration report submitted by every employer to inform IRBM (or LHDN) on the number of employee’s income details every year not later than 31st March.

2. Who should submit?

All Malaysian businesses regardless whether it’s a large, medium or small company is required to submit a Form E to the Inland Revenue Bard (IRB) via e-filing by the end of this month – 31st March 2021 — (Grace period extension till 30th April 2021 this year!)

3. What are the taxable income?

Wages, salaries, overtime, leave pay, fees, commission, bonuses, gratuities, perquisites, or allowances (whether in money or otherwise) including travelling or entertainment allowances.

List of benefits in kind that must be reported in Form E & EA (CP8D)

Payment of income tax born by employer
The value of the use of the company’s vehicle or handphone
The value of the living accommodation provided by the employer
Payment of utility bills born by the employer
Benefits and monthly bills for phone, mobile tablet and broadband subscription
Traditional medicine and maternity
Travelling allowance for official duties and personal use
Allowance or fee for parking
Allowance or subsidies for childcare
Fixed meal allowances
Payment of household expenses, food, club subscriptions, insurance premium, subsidised loans and school fees for children
Leave passages provided to employees on overseas or local trips
Discounted price for consumable business products of the employer
Discounted price for services provided by the employer
Subsidies on interest on loans totaling up to RM300,000 for housing, education or passenger motor vehicle.

Now What Happens If You Fail To Submit the form within the stipulated filing date?— The penalty ranges from RM200 to RM20,000; imprisonment for a term not exceeding 6 months; or both.

Let’s AVOID all that. GGE Corporate Advisory’s tax advisors can help with your tax filing and submissions. Our team of advisors are ready to assist you with these matters and ensure that you and your business remain compliant with tax regulations in Malaysia.