What’s Form E?
All Sdn Bhd with or without employee is required to file Form E return to LHDN by 31 March every year and the deadline is 30 April. [section 83 Income Tax Act 1967]
Failure to file will result in a penalty of RM200 to RM20,000 or imprisonment for a term not exceeding 6 months, or both. [section 120(1)(b) Income Tax Act 1967]. As the offence repeats, the penalty gets more severe.
What’s inside a Form E?
- Total number of employees within the company (including NIL)
- New hiring
- Company information
- All Employee(s) information and income details
Important highlights
- To include part-timer
- To include intern
- To include contract staff
- Foreigner / local staff leaving the country more than 3 months without intention of returning
Why it’s more complicated than you think?
- Subject to tax audit and additional penalties
- Manual administration is complicated. Need to keep track: –
- Total number of employees
- include new / exit
- full-time/part-time/contract/intern
- Calculate Monthly Tax Deduction (MTD) scheme on PCB
- Every employee marital status
- Tax exempt allowances (childcare, petrol allowance, staff advance, meal allowance, insurance premium, gift)
- Total number of employees
- Any errors require re-submission and penalties
What’s easier, better, and faster way to administer your Form E filing. The smarter choice is to outsource to MYKONGSI. Why?
- Save your administration time from something outside your team expertise
- Avoid confusion reading how to do from the internet, you can risk wasting time and still getting it wrong!
- Get advice from expert (HR + Qualified Accountants’ team combined) It’s not the cost you can see, it’s the value you can’t.