What is an EA Form (Borang EA)?

The EA Form (Borang EA), also known as the Yearly Remuneration Statement, is a mandatory document that employers must provide to each employee. It summarises the employee's total remuneration, benefits, deductions, and tax contributions for the calendar year. Employees use it to file their personal income tax return (Borang BE or Borang B) with LHDN.

When is the deadline to give EA forms to employees?

Under Section 83(1A) of the Income Tax Act 1967, employers must prepare and furnish the EA Form to every employee by the last day of February of the following year. For example, EA forms for the year 2025 must be distributed by 28 February 2026.

What is the penalty for not providing EA forms on time?

Employers who fail to prepare and furnish EA forms to employees by the deadline may be fined between RM200 and RM20,000, imprisoned for up to 6 months, or both, under Section 120(1)(b) of the Income Tax Act 1967.

What is the difference between EA Form and EC Form?

The EA Form is for private sector employees. The EC Form (Borang EC) serves the same purpose but is issued by government and statutory bodies to public sector employees. Both summarise annual remuneration for tax filing purposes.

What is CP8D and when must it be submitted?

CP8D is the Statement of Remuneration from Employment that employers must submit to LHDN. It is essentially the employer's summary of all EA forms issued. CP8D must be submitted to LHDN by 31 March of the following year, either electronically via e-Data Praisi or in hardcopy form.

Do I need to submit EA forms to LHDN?

No, EA forms are given directly to employees. However, employers must submit a separate form — CP8D (Penyata Saraan Daripada Penggajian) — to LHDN, which summarises all employees' remuneration details. LHDN uses CP8D to cross-check individual tax returns.

What should I include under Benefits in Kind (BIK) on the EA form?

Benefits in Kind include company car, driver, accommodation, utilities, domestic help, gardener, and any other perquisites provided to the employee. The prescribed value or formula value of these benefits must be reported on the EA form under Section C.

Can I generate EA forms automatically instead of filling them manually?

Yes. Payroll software like HavaHR automatically compiles 12 months of payroll data — including salary, bonuses, allowances, EPF, SOCSO, EIS, and PCB — and generates EA forms for every employee in one click. This eliminates manual data entry and reduces the risk of errors.

Do part-time employees and contract workers need EA forms?

Yes. Any individual who receives employment income under a contract of service is entitled to an EA form, regardless of whether they are full-time, part-time, or on fixed-term contracts. Independent contractors receiving income under a contract for service are excluded.

What happens if the figures on the EA form are incorrect?

Incorrect EA forms can cause employees to file inaccurate tax returns, potentially leading to LHDN audit queries, additional tax assessments, and penalties for both the employer and employee. Employers should verify all figures against payroll records before issuing EA forms.

EA Form (Borang EA) Malaysia: Complete Employer Guide

Every January and February, Malaysian employers face the same annual scramble: preparing EA forms (Borang EA) for every employee before the statutory deadline. Whether you have 5 employees or 500, the EA form is a legal obligation that cannot be ignored — and getting it wrong can result in fines, audit queries, and unhappy staff who cannot file their taxes on time.

This guide covers everything you need to know about the EA form — from what it is, what goes into it, the legal deadline, common mistakes, and how modern payroll software like HavaHR can eliminate the February panic entirely.

What Is the EA Form (Borang EA)?

The EA Form, officially known as Borang EA (Penyata Saraan Daripada Penggajian), is a Yearly Remuneration Statement that every employer in Malaysia must provide to each employee. It summarises the employee's total earnings, benefits, deductions, and tax contributions for the preceding calendar year.

Employees use the EA form to file their personal income tax return — Borang BE (for individuals with employment income only) or Borang B (for individuals with business income) — with the Lembaga Hasil Dalam Negeri (LHDN).

The EA Form is governed by Section 83(1A) of the Income Tax Act 1967. It applies to all employers in the private sector. Government and statutory bodies issue the equivalent EC Form (Borang EC) instead.

Who Must Prepare EA Forms?

Every employer who pays remuneration to an employee under a contract of service must prepare and issue an EA form. This includes:

Sole proprietors, partnerships, and Sdn Bhd companies
Employers with full-time, part-time, and contract employees
Employers of both Malaysian citizens and foreign workers

Independent contractors engaged under a contract for service are excluded — they receive different documentation for tax purposes.

The Legal Deadline: Last Day of February

Critical Deadline

EA forms must be furnished to employees by the last day of February.

For the 2025 tax year, the deadline is 28 February 2026. For the 2026 tax year, it is 28 February 2027. This is a firm statutory deadline — there are no extensions.

This deadline exists because employees need their EA forms to file their own tax returns. The personal tax filing deadline for individuals with employment income (Borang BE) is typically 30 April. Without the EA form, employees cannot accurately complete their tax returns.

For employers, February is effectively the busiest compliance month of the year — and the earlier you start preparing, the less stressful it becomes.

What Goes Into an EA Form: Section-by-Section Breakdown

The EA form is divided into several sections. Understanding each section helps ensure accuracy and completeness.

Section A: Particulars of Employer

Employer's name and income tax reference number (E number)
Employer's address

Section B: Particulars of Employee

Employee's name, IC number or passport number
Income tax reference number (SG or OG number)
Designation and employment period during the year

Section C: Employment Income and Benefits

This is the most detailed section and covers:

Gross salary, wages, and overtime — total cash remuneration for the year
Bonus and director's fees — all one-off and variable payments
Commission — sales incentives and performance-based payments
Allowances — fixed, variable, and parking/travel allowances
Gratuity and compensation for loss of employment
Benefits in Kind (BIK) — company car, driver, accommodation, utilities, domestic help, etc.
Value of Living Accommodation (VOLA) — housing provided by employer
Perquisites — club memberships, leave passages, etc.

Section D: Deductions and Contributions

EPF (KWSP) — total employee EPF contributions for the year
SOCSO (PERKESO) — employee's share of social security contributions
EIS (SIP) — Employment Insurance System contributions
PCB (MTD) — total income tax deducted at source throughout the year
Zakat — zakat deducted via salary, if applicable

Section E: Tax Exemptions

Tax-exempt allowances (e.g. petrol allowance up to RM6,000 for official duties)
Tax-exempt perquisites and benefits
Compensation for loss of employment (exempt up to RM10,000 per year of service)

Preparing EA Forms: Manual vs Payroll Software

The Manual Approach

Many SMEs still prepare EA forms manually — typically by compiling 12 months of payroll data from spreadsheets, pay records, and bank statements. The process typically involves:

Gathering salary records for each month (January to December)
Summing up gross remuneration, bonuses, commissions, and allowances
Calculating the total value of Benefits in Kind and VOLA provided
Totalling EPF, SOCSO, EIS, and PCB deductions from payslips
Filling in the EA form template for each employee individually
Printing, signing, and distributing to each employee

For a company with 30 employees, manual EA form preparation can take 2–3 full working days. The risk of errors increases significantly with each additional employee and each additional pay component.

The Payroll Software Approach

Modern payroll software like HavaHR eliminates the manual compilation entirely. Because every payroll run throughout the year is recorded in the system, the software already has all the data it needs:

12 months of salary, bonuses, commissions, and allowances
All statutory deductions (EPF, SOCSO, EIS, PCB)
Benefits in Kind and perquisite records
Tax-exempt amounts and exemption categories

Generating EA forms becomes a one-click operation — the system populates every section of the EA form for every employee, ready for review and distribution.

Common Mistakes When Preparing EA Forms

Even experienced HR managers make errors on EA forms. Here are the most common mistakes — and why they matter:

Incorrect Total Remuneration

Forgetting to include overtime pay, ad-hoc bonuses, or commission payments in the total. Every ringgit paid as employment income must be reported — including one-off payments and arrears.

Missing Benefits in Kind (BIK)

Company cars, accommodation, and other non-cash benefits must be reported using prescribed values from LHDN. Omitting BIK understates the employee's taxable income and can trigger LHDN queries.

Wrong EPF or PCB Totals

Manually summing 12 months of deductions is error-prone. A single typo means the EA form does not match LHDN's records, which can flag the employee's return for audit.

Not Reporting Exempt Income Separately

Tax-exempt allowances and benefits must be itemised in Section E. Lumping them with taxable income leads to over-taxation; omitting them entirely means incomplete reporting.

Omitting Mid-Year Joiners and Leavers

Employees who joined or left mid-year still require EA forms. The form should reflect their actual period of service and pro-rated remuneration during that period.

Penalties for Non-Compliance

The Income Tax Act 1967 treats the EA form obligation seriously. Employers who fail to comply face penalties under several provisions:

Penalties Under the Income Tax Act 1967

Failure to furnish EA Form — Section 120(1)(b)

Fine of RM200 to RM20,000, imprisonment up to 6 months, or both.

Incorrect or misleading statement — Section 120(1)(d)

Fine of RM1,000 to RM10,000 and 200% of undercharged tax, if the inaccuracy leads to tax evasion.

Failure to submit CP8D to LHDN — Section 120(1)(b)

Same penalty range applies: fine of RM200 to RM20,000, imprisonment up to 6 months, or both.

Beyond legal penalties, late or inaccurate EA forms erode employee trust. Staff who receive incorrect forms may face their own tax issues, and the blame inevitably falls on the employer.

CP8D: Statement of Remuneration from Employment

While the EA form goes to employees, the CP8D (Penyata Saraan Daripada Penggajian) goes to LHDN. Think of CP8D as the employer's declaration to the tax authority — a summary of all EA forms issued for the year.

CP8D Key Facts

What it contains: A list of all employees, their IC/passport numbers, total remuneration, EPF, SOCSO, EIS, and PCB deducted for the year
Submission deadline: 31 March of the following year (e.g. 31 March 2026 for the 2025 tax year)
Submission method: Electronically via LHDN's e-Data Praisi system, or in hardcopy using the prescribed format
Mandatory for: All employers, even if they have only one employee

LHDN uses CP8D data to cross-check individual tax returns. If an employee declares RM60,000 on their Borang BE but the employer's CP8D shows RM72,000, it triggers an audit query. Consistency between EA forms and CP8D is critical.

The Annual EA Form Timeline

Jan

Begin compiling payroll data for the preceding year

Verify all 12 months of payroll records are complete. Reconcile EPF, SOCSO, EIS, and PCB totals against remittance receipts.

Feb

Prepare, verify, and distribute EA forms to all employees

Deadline: last day of February. Allow time for review and corrections before distributing.

Mar

Submit CP8D to LHDN

Deadline: 31 March. Submit via e-Data Praisi for electronic filing. Ensure CP8D data matches EA forms exactly.

Apr

Employees file personal tax returns

Borang BE deadline: 30 April (manual) or 15 May (e-Filing). Employees may contact HR for EA form clarifications.

How HavaHR Auto-Generates EA Forms

With HavaHR, the EA form is not a year-end project — it is a natural output of running payroll throughout the year. Here is how it works:

12 Months of Data, Already Captured

Every payroll run — salaries, bonuses, allowances, overtime, commissions — is recorded in the system. Statutory deductions (EPF, SOCSO, EIS, PCB) are calculated and logged automatically each month.

Benefits in Kind Tracked Throughout the Year

Company cars, accommodation, and other non-cash benefits are recorded with their prescribed values. No last-minute scramble to calculate BIK amounts — they are ready at year-end.

One-Click EA Form Generation

When January arrives, simply generate EA forms for all employees. The system populates every section — Section A through E — with accurate, reconciled data. Review, approve, and distribute.

Employee Self-Service Access

Employees can download their EA form directly from the HavaHR portal — no printing, no physical distribution, no lost copies. They get instant access the moment you publish.

CP8D Data Ready for Submission

HavaHR compiles the CP8D summary from the same data used for EA forms, ensuring perfect consistency. Export in the format required by LHDN's e-Data Praisi system.

EA Form Preparation Checklist

Use this checklist to ensure nothing is missed when preparing EA forms:

Before You Start

Verify all 12 months of payroll have been finalised and reconciled
Confirm EPF remittance receipts match total employee EPF deductions
Confirm SOCSO and EIS remittances match total deductions
Confirm PCB remittances match total income tax deducted
Review Benefits in Kind records for completeness

For Each Employee

Employee IC number and tax reference number are correct
Employment period accurately reflects start date and end date (if applicable)
All income components included: salary, bonus, commission, allowances, overtime
Benefits in Kind valued correctly using LHDN prescribed rates
Tax-exempt items reported separately in Section E
Cross-check total remuneration against sum of monthly payslips

After Distribution

Retain copies of all EA forms issued (minimum 7 years per LHDN requirements)
Prepare and submit CP8D to LHDN by 31 March
Be available to answer employee queries about their EA form figures

Conclusion

The EA form is more than just a compliance document — it is a reflection of how well your payroll is managed throughout the year. Employers who maintain accurate monthly records, track benefits properly, and use reliable payroll software find that February is no longer a crisis month.

For SME owners and HR managers who dread the annual EA form exercise, the solution is not to work harder in February — it is to set up the right system from January onwards. When your payroll data is accurate, complete, and centralised, EA form generation becomes effortless.