If you have a job or have been employed before, you should have come across this little piece of paper called the EA form. Every time before the tax season comes around, you will see everyone scrambling around the Human Resource teams’ office trying to get their own
For everyone who has no idea what EA forms are, let us break it down for you.
According to the Inland Revenue Board of Malaysia, an EA form is a Yearly Remuneration Statement that includes your salary for the past year. You will usually use this form to file personal taxes during tax season.
The reason you need this is to ensure that if you are above the paygrade that requires you to pay taxes – the form ensures that you are aware of this and this is the form you use when you go online and do your E-Filing.
Taken directly from the LHDN website, it is cited that referring to Section 83(1A) Income Tax Act 1967, “that every employer shall, for each year, prepare and render to his employee statement of remuneration of that employee on or before the last day of February in the year immediately following the first mentioned year”.
Example of an EA Form
If you are an employer, a finance executive or a member of the Human Resource team, this will be your responsibility to ensure that the rest of your teammates get their forms by the month of February every year. This is your responsibility in the eyes of the law.
With the addition of the new Malaysian Business Reporting System at the start of 2018, you will now have to report back using this new software created by SSM. All financial reports at the end of the year including EA forms will have to be reported to this new software. It will soon become mandatory for everyone to use the MBRS software.
Since it’s a new software and we all know how long it will take to master a new software, SSM has launched a project that allows workshops to be held to teach and help businesses in learning how to use the new reporting system.
Learn how to by the developers of this system by clicking this link to register your teammates today!