4. When should employers issue EA forms? 

The LHDN states that all employers must issue EA forms to their present and former employees who worked for them during the year of assessment by the 28th of February of the following year.

This means that for YA 2022, you should have already received your EA from your employers by the 28th of February 2023.

If you have worked for more than one employer over the course of 2022, be sure to reach out to the HR department of any previous companies that you worked at during the year of assessment for a separate EA form. 

Why We Need EA Form?

We need EA forms to ensure that we are declaring the right amount of earnings and exemptions in our filing.

The EA Form also can be used to check if we are above the pay grade that requires us to pay taxes.

Note: Failure to prepare and render EA Form to employees before last day of February,

fine of RM 200 to RM 20,000 or imprisonment for a term not exceeding 6 months or both.

a filled example of EA form (source from Internet)

s.13(1)(a): Wages, salary, remuneration, leave pay, fee, commission, bonus, gratuity, perquisite or allowance

s.13(1)(b): Benefit in kind (“BIK”) – leave passage, driver, motor vehicle etc

s.13(1)(c): Value of living accommodation (“VOLA”)

s.13(1)(d): Amount from unapproved pension or provident fund

s.13(1)(e): Compensation for loss of employment

To assist taxpayers who have lost their jobs due to the pandemic, for years of assessment in 2020 and 2021, the income tax exemption limit for compensation for loss of employment will be increased from RM10,000 to RM20,000 for each full year of service