EA Form Malaysia: A Complete Guide for Employees and Employers (2026 Update)

GeneralJanuary 09, 2026 09:00

EA Form Malaysia: A Complete Guide for Employees and Employers (2026 Update)

Navigating income tax Malaysia and payroll documentation can be complex, especially regarding the EA Form Malaysia, a mandatory document for the annual tax season.

In this 2026 tax update, we cover everything from employer obligations and LHDN deadlines to how this form affects your income tax e-filing. This guide is essential for HR professionals, business owners, and employees looking to stay compliant with Malaysian tax laws.

What Is EA Form Malaysia?

The EA Form officially known as Borang EA or the Annual Remuneration Statement, is a yearly tax document issued by Malaysian employers to their employees. It provides a detailed summary of an employee’s earnings and statutory deductions for a specific Year of Assessment (YA).

The form includes critical data for LHDN tax filing:

Gross Salary & Wages: Including bonuses, commissions, and overtime pay.
Allowances: Both taxable and tax-exempt allowances.
Statutory Contributions: Employee portions of EPF (KWSP), SOCSO (PERKESO), and EIS.
Monthly Tax Deductions (MTD/PCB): The total tax already remitted to LHDN.
Benefits-In-Kind (BIK): Non-cash remuneration such as company cars or lodging.

Note: The EA Form consolidates a year's worth of data, meaning employees do not need to manually calculate their income using 12 individual payslips.

EA Form vs. Form E and CP8D

It is common to confuse these documents. Here is the breakdown of Malaysian payroll compliance terms:

Document	Purpose	Who Handles It?
EA Form	Summary of individual earnings/deductions.	Issued by Employer to Employee.
Form E	Declaration of company-wide staff numbers and tax.	Submitted by Employer to LHDN.
CP8D	Digital list of all employees' financial details.	Submitted by Employer as an attachment to Form E.

Who Must Receive an EA Form?

Any employee employed for more than seven days in a calendar year must be issued an EA Form. This includes:

Full-time, part-time, and contract workers.
Employees who resigned or were terminated during the year.
Expatriates and foreign workers on a Malaysian payroll.
Company Directors receiving fees or salaries.

2026 Statutory HR Checklist

To ensure your Borang EA is 100% compliant for the Year of Assessment 2025, follow this checklist before the February 28 deadline:

1. Employee Verification

Verify Tax ID: Ensure every employee (including expatriates) has a valid LHDN Tax Reference Number (IG).
Identify "7-Day" Rule Staff: Include any employee who worked for more than 7 days in 2025, including those who resigned mid-year.
Director Fees: Ensure director fees and meeting allowances are captured accurately.

2. Remuneration & Benefits (Section B & C)

Gross Remuneration: Total all basic pay, bonuses, commissions, and overtime.
Benefits-In-Kind (BIK): Use LHDN's "Prescribed Value Method" or "Formula Method" for items like company cars, fuel, and drivers.
Value of Living Accommodation (VOLA): Calculate correctly if the company provides housing.

3. Statutory Deductions (Section D & E)

PCB Reconciliation: Match the total Monthly Tax Deductions (PCB) on the EA Form with your PCB in MyTax.
EPF/SOCSO/EIS: Ensure only the employee's portion is recorded in the deduction section.

4. Tax-Exempt Allowances (Section F)

Check Exemption Limits: Ensure items like petrol allowances (limit RM6,000) or childcare allowances (limit RM2,400) and etc are placed in Section F if they meet LHDN criteria.

EA Form 2026 Deadlines

To remain compliant with LHDN regulations, mark these dates for the 2026 Tax Season (Year of Assessment 2025):

28 February 2026: Deadline for employers to distribute EA Forms to all employees.
31 March 2026: Deadline for companies to submit Form E & CP8D.
30 April 2026: Deadline for Form E e-filing (includes the standard 1-month grace period usually provided by LHDN).
30 April 2026: Deadline for employees (without business income) to submit Form BE via MyTax.
15 May 2026: Deadline for employees (without business income) to submit Form BE via MyTax. (includes the standard 15-days grace period usually provided by LHDN).

How Employees Use EA Form for Tax Filing

When you log into the LHDN MyTax portal for e-filing, you will use the EA Form to fill out Borang BE. The form ensures you accurately report:

Total Employment Income: Found in Section B of the EA Form.
Tax Reliefs: Such as your EPF and SOCSO contributions, which reduce your chargeable income.
PCB/MTD Paid: Confirms that the tax reported in your EA Form matches your MyTax payment.

Penalties for Non-Compliance

Failing to issue an EA Form is a serious offense under Section 120 of the Income Tax Act 1967.

Fines: Between RM200 and RM20,000.
Imprisonment: A term not exceeding six months.
Both: In severe cases, employers may face both financial penalties and jail time.

Furthermore, discrepancies between an employee's EA Form and the employer's CP8D filing can trigger an LHDN tax audit.

EA Form Best Practices for 2026

Adopt Payroll Software: Use LHDN-verified payroll systems to automate the generation of Borang EA and CP8D files.
Verify BIK Values: Ensure Benefits-in-Kind (like petrol cards or housing) are valued correctly according to LHDN's prescribed formulas.
Digital Distribution: Save paper and time by distributing EA Forms via secure email or HR portals.
Early Reconciliation: Cross-check your total monthly PCB payments against your annual totals in January to catch errors early.

Conclusion

The EA Form Malaysia is the backbone of a smooth tax season. By understanding the 2026 requirements and meeting the February 28 deadline, employers can avoid heavy penalties and support their employees in filing accurate personal income tax.

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Reference

Inland Revenue Board of Malaysia (LHDN). Employer Responsibilities under the Income Tax Act 1967.
Income Tax Act 1967 (Malaysia). Sections 83 and 120 – Employer Obligations and Penalties.
PayrollPanda Malaysia. EA Form Malaysia: Guide for Employers and Employees.
Emerhub Malaysia. EA Form in Malaysia: Requirements, Deadlines and Compliance.
BP-AST Malaysia. Form E and EA Form: Employer Filing Obligations.
Intune MY. Annual Income Summary and EA Form Usage for Tax Filing.
Payboy HR & Payroll Knowledge Base. EA Form Components and Payroll Breakdown.

EA Form Malaysia: A Complete Guide for Employees and Employers (2026 Update)

EA Form Malaysia: A Complete Guide for Employees and Employers (2026 Update)

What Is EA Form Malaysia?

The EA Form officially known as Borang EA or the Annual Remuneration Statement, is a yearly tax document issued by Malaysian employers to their employees. It provides a detailed summary of an employee’s earnings and statutory deductions for a specific Year of Assessment (YA).

The form includes critical data for LHDN tax filing:

Gross Salary & Wages: Including bonuses, commissions, and overtime pay.

Allowances: Both taxable and tax-exempt allowances.

Statutory Contributions: Employee portions of EPF (KWSP), SOCSO (PERKESO), and EIS.

Monthly Tax Deductions (MTD/PCB): The total tax already remitted to LHDN.

Benefits-In-Kind (BIK): Non-cash remuneration such as company cars or lodging.

Note: The EA Form consolidates a year's worth of data, meaning employees do not need to manually calculate their income using 12 individual payslips.

EA Form vs. Form E and CP8D

It is common to confuse these documents. Here is the breakdown of Malaysian payroll compliance terms:

Document

Purpose

Who Handles It?

EA Form

Summary of individual earnings/deductions.

Issued by Employer to Employee.

Form E

Declaration of company-wide staff numbers and tax.

Submitted by Employer to LHDN.

CP8D

Digital list of all employees' financial details.

Submitted by Employer as an attachment to Form E.

Who Must Receive an EA Form?

Any employee employed for more than seven days in a calendar year must be issued an EA Form. This includes:

Full-time, part-time, and contract workers.

Employees who resigned or were terminated during the year.

Expatriates and foreign workers on a Malaysian payroll.

Company Directors receiving fees or salaries.

2026 Statutory HR Checklist

To ensure your Borang EA is 100% compliant for the Year of Assessment 2025, follow this checklist before the February 28 deadline:

1. Employee Verification

Verify Tax ID: Ensure every employee (including expatriates) has a valid LHDN Tax Reference Number (IG).

Identify "7-Day" Rule Staff: Include any employee who worked for more than 7 days in 2025, including those who resigned mid-year.

Director Fees: Ensure director fees and meeting allowances are captured accurately.

2. Remuneration & Benefits (Section B & C)

Gross Remuneration: Total all basic pay, bonuses, commissions, and overtime.

Benefits-In-Kind (BIK): Use LHDN's "Prescribed Value Method" or "Formula Method" for items like company cars, fuel, and drivers.

Value of Living Accommodation (VOLA): Calculate correctly if the company provides housing.

3. Statutory Deductions (Section D & E)

PCB Reconciliation: Match the total Monthly Tax Deductions (PCB) on the EA Form with your PCB in MyTax.

EPF/SOCSO/EIS: Ensure only the employee's portion is recorded in the deduction section.

4. Tax-Exempt Allowances (Section F)

Check Exemption Limits: Ensure items like petrol allowances (limit RM6,000) or childcare allowances (limit RM2,400) and etc are placed in Section F if they meet LHDN criteria.

EA Form 2026 Deadlines

To remain compliant with LHDN regulations, mark these dates for the 2026 Tax Season (Year of Assessment 2025):

28 February 2026: Deadline for employers to distribute EA Forms to all employees.

31 March 2026: Deadline for companies to submit Form E & CP8D.

30 April 2026: Deadline for Form E e-filing (includes the standard 1-month grace period usually provided by LHDN).

30 April 2026: Deadline for employees (without business income) to submit Form BE via MyTax.

15 May 2026: Deadline for employees (without business income) to submit Form BE via MyTax. (includes the standard 15-days grace period usually provided by LHDN).

How Employees Use EA Form for Tax Filing

When you log into the LHDN MyTax portal for e-filing, you will use the EA Form to fill out Borang BE. The form ensures you accurately report:

Total Employment Income: Found in Section B of the EA Form.

Tax Reliefs: Such as your EPF and SOCSO contributions, which reduce your chargeable income.

PCB/MTD Paid: Confirms that the tax reported in your EA Form matches your MyTax payment.

Penalties for Non-Compliance

Failing to issue an EA Form is a serious offense under Section 120 of the Income Tax Act 1967.

Fines: Between RM200 and RM20,000.

Imprisonment: A term not exceeding six months.

Both: In severe cases, employers may face both financial penalties and jail time.

Furthermore, discrepancies between an employee's EA Form and the employer's CP8D filing can trigger an LHDN tax audit.

EA Form Best Practices for 2026

Adopt Payroll Software: Use LHDN-verified payroll systems to automate the generation of Borang EA and CP8D files.

Verify BIK Values: Ensure Benefits-in-Kind (like petrol cards or housing) are valued correctly according to LHDN's prescribed formulas.

Digital Distribution: Save paper and time by distributing EA Forms via secure email or HR portals.

Early Reconciliation: Cross-check your total monthly PCB payments against your annual totals in January to catch errors early.

Conclusion

The EA Form Malaysia is the backbone of a smooth tax season. By understanding the 2026 requirements and meeting the February 28 deadline, employers can avoid heavy penalties and support their employees in filing accurate personal income tax.

About us

Reference

Inland Revenue Board of Malaysia (LHDN). Employer Responsibilities under the Income Tax Act 1967.

Income Tax Act 1967 (Malaysia). Sections 83 and 120 – Employer Obligations and Penalties.

PayrollPanda Malaysia. EA Form Malaysia: Guide for Employers and Employees.

Emerhub Malaysia. EA Form in Malaysia: Requirements, Deadlines and Compliance.

BP-AST Malaysia. Form E and EA Form: Employer Filing Obligations.

Intune MY. Annual Income Summary and EA Form Usage for Tax Filing.

Payboy HR & Payroll Knowledge Base. EA Form Components and Payroll Breakdown.