As an employer in Malaysia, there are several tax obligations and responsibilities that you must comply with. One of the most important responsibilities is submitting Form E and C.P.8D to the Inland Revenue Board (IRB).  

In this article, we'll delve into your responsibilities as an employer and highlight the potential risks associated with non-compliance. 

Form E is a tax declaration form that every employer is required to complete and submit annually to the IRB. This form is primarily used by employers to report their employees’ status, such as the total number of employees as of 31 December, the number of new hires during the year, the number of employees who ceased employment during the year, as well as detailed information of the employees.  

Form C.P.8D is a detailed report that allows employers to declare their company information and the remuneration paid to each employee during the year. Employers are required to record and report information such as total deduction claimed and particulars of tax deduction on the form, regardless of the type of employment contract the employees have, whether full-time, part-time, intern, or fixed-term. 

Generally, Form E shall only be considered complete if Form C.P.8D is furnished before or on the due date for submission of the form. However, confusion often arises among many employers regarding their obligations to complete these forms. One common issue is whether employers with no employees are required to submit these forms. 

In fact, companies (including dormant companies), limited liability partnerships, trust bodies and co-operative societies are compulsory to furnish Form e-E and C.P.8D, regardless of whether they have employees or not. 

If you are a sole proprietorship or partnership without any employees, you are not required to submit Form C.P.8D. However, it's important to note that submission of Form E is still required regardless of whether you have employees or not. In simple terms, every employer is responsible for submitting Form E, and exemptions for the submission of Form C.P.8D are granted only to certain categories of employers. 

Starting from the Year of Assessment (YA) 2023, the submission of Form E and C.P.8D is mandatory via e-Filing. This means that the IRB will no longer accept manual submissions of these forms. Additionally, submission is only allowed through the roles of Employers, Employers' Representatives, or Tax Agent e-Filing System (TAeF) for certified tax agents.  

Employers are required to submit Form E and C.P.8D by the statutory deadline, which is 31 March 2024. Fortunately, the Inland Revenue Board has also granted a one-month grace period for this, which means you may choose to file it by 30 April 2024.  

Failure to prepare and file Form E & C.P.8D within the stipulated due date is liable to a fine of not less than RM200 and not more than RM20,000 or to imprisonment for a term not exceeding 6 months or both under the Income Tax Act 1967 - Section120(1)(b). 

In conclusion, employers play a vital role in declaring their employees' status and income to the IRB through the submission of Form E. Employers must accurately declare this information and ensure it is submitted on time to avoid any penalties.

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