Employers are required to complete Form E (Borang E) and submit it to the Inland Revenue Board of Malaysia (IBRM). A declaration report must be completed by the 31st of March of each calendar year to inform the IRB of the number of employees and their income.
The tax submission season begins in March. By the end of this month, every Malaysian business, regardless of size, must submit a Form E to the Inland Revenue Board (IRB).
Form E on an employee’s tax information may be referred to by the IRB. As of the Year of Assessment 2009, each employer is required to prepare and deliver to his employee a statement of remuneration before the end of February every year by Section 83(1A).
An employee’s statement of remuneration, also known as an EA Form, shows the details of all employment income paid to each employee, as well as the amount, contributed to approved pension funds and the amount of tax deducted. EA Forms do not need to be submitted to the IRB, as opposed to Form E.
The employer’s Form E field is where the IRB can verify that employees are reporting their income correctly. Therefore, the income information on Form E must be consistent with the information on an employee’s EA Form.
Form E may still be submitted manually to the IRB this year for the Year of Assessment 2015. Employers are, however, required to file Form E online via e-filing as of Year of Assessment 2016, which is due for submission in the Year 2017.
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