The Form EA (also known as Borang EA) is a vital annual tax document. It summarises an employee’s earnings for the previous year. Every employer has a legal obligation to prepare and distribute EA forms to their staff. This facilitates accurate personal income tax reporting.
As the 2026 tax season approaches for the Year of Assessment 2025, staying compliant with LHDN tax filing requirements is essential for both employers and employees. Check out the complete guide here.
What is the EA Form 2025 in Malaysia?
The EA Form 2025 is the remuneration statement for employment for the year ended 31 December 2025. This yearly tax document is used by employees to accurately report their income when filing their personal income tax returns (Form BE or Form B) with the Inland Revenue Board of Malaysia (LHDN).
Mandatory Deadlines for Malaysian Employers
Employers must issue the Form EA to employees by a strict deadline. This is According to Malaysian tax laws, specifically Section 83(1A) of the Income Tax Act 1967
- Issue Date: On or before 28 February of the following year.
- Form E Submission: The Form EA is given to the employee. The employer must also submit Form E (the Employer’s Return) to LHDN by 31 March each year.
Statutory Requirements and Penalties
Failing to issue the EA form or submit Form E on time can lead to serious legal consequences under the Income Tax Act 1967.
- Penalty: Malaysian employers who fail to comply may face a fine or imprisonment for up to six months, or both.
- Compliance: To stay compliant, employers must ensure all earnings, bonus payments, and monthly tax deductions (PCB) are correctly recorded.
Form EA Preparation: Taxable vs. Exempt Income
Preparation requires distinguishing between different types of remuneration.
1. Taxable Employment Income
The LHDN defines gross employment income under Section 13(1) as including:
- Wages and Salary: Including overtime pay and leave pay.
- Bonus and Fees: Such as director fees and commissions.
- Benefits-in-Kind (BIK): Non-monetary benefits like company cars or furniture.
- Value of Living Accommodation: The value of housing that can be taxed, provided by the employer.
2. Part F: Tax Exempt Allowances and Perquisites
Certain items are exempt from tax up to a specific allowance limit. It must be declared in Part F of the EA Form:
- Petrol/Travel Allowance: Exempt up to RM6,000 for official duties.
- Child Care Allowance: Exempt up to RM2,400 for children up to 12 years old.
- Digital Gifts: Exemption for one unit of a mobile phone, tablet, or laptop provided to the employee.
- Service Awards: Exempt up to RM2,000 for employees who worked for more than 10 years with the same employer.
Streamline Your Payroll and Tax Filing
To streamline your payroll process, many Malaysian employers utilise an EA form template or automated software to generate Borang EA for their employers and employees.
Frequently Asked Questions
- Who needs an EA form? Every Malaysian employee who has worked for more than one day in the basis year is entitled to receive one.
- Can I download a free EA form? Yes, the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri) provides a free EA form on their official portal for employers to give to their employees.
Need assistance with your 2025 filing?
Unsure about the taxable status of specific employee benefits? Do you need help with automated payroll reporting for the 2026 tax season? Feel free to reach out to the Altomate support team. You can also consult a licensed tax professional to ensure your compliance remains airtight.
