EA Form – What You Need to Know

1. What is the EA Form?

• An annual income statement prepared by employers for employees.
• Summarises:
  • Total yearly salary and benefits
  • Total tax deducted
  • Statutory contributions
• Used by employees to file personal income tax with the Inland Revenue Board of Malaysia (LHDN).

2. Who Receives It?

• All private sector employees who received salary or benefits during the year.
• Civil servants receive Form EC instead (similar purpose).

3. When Is It Issued?

• Must be given by employers before 28 February of the following year.
• Example:
  • Income earned in 2025 → EA Form must be issued by 28 February 2026.

4. What Information Is Included?

A. Employee Income

• Basic salary
• Bonus
• Commission
• Overtime
• Allowances
• Benefits-in-kind (e.g. company car, accommodation)

B. Statutory Deductions

• EPF contributions to Employees Provident Fund
• SOCSO contributions to Social Security Organization
• Monthly Tax Deduction (PCB/MTD) paid to Inland Revenue Board of Malaysia

5. What Is Monthly Tax Deduction (PCB/MTD)?

• Tax deducted automatically from salary every month.
• Paid directly to LHDN by employer.
• Helps spread tax payments across the year.
• EA Form shows total tax deducted for the year.

6. Why Is the EA Form Important?

For Employees:

• Required for annual income tax filing.
• Used to complete e-Filing.
• Helps check:
  • If tax overpaid → may get refund.
  • If underpaid → need to pay balance.

For Employers:

• Legally required to prepare and issue it.
• Failure to provide may result in penalties.

7. What Should Employees Do?

• Check details carefully.
• Ensure salary and deductions are correct.
• Inform employer immediately if there are errors.
• Keep it for record and tax reference.

Summary

The EA Form is:

• A yearly salary and tax summary.
• Issued by employer.
• Required for income tax filing in Malaysia.
• An important document for both tax compliance and financial record keeping.