What Is Form E in Malaysia, and Why It Matters More Than You Think

E invoicing
what is form e in malaysia

Malaysian employers must file Form E with LHDN by March 31 each year. This yearly tax statement shows employee counts, confirms EA Form distribution, and makes sure all employee income appears for tax reasons—even when a company has no employee on the books. 

Tax season doesn’t top anyone’s list of favorite times—if you handle payroll, compliance, and a busy team. With deadlines coming from all sides, you might forget about Form E. But ignoring it can cause more than just paperwork problems. It can lead to fines, hold up tax filings for your staff, and even make LHDN watch you closer in future years.  To avoid this, let’s break it down in a clear, simple, and useful way. 

What Is Form E? 

A lot of new business owners think Form E is about employees paying their salary tax. But Form E isn’t for employee to file taxes—it’s for employers to tell LHDN about their yearly employee info.  Form E works as a yearly statement that confirms: 
  • The number of employee you had that year 
  • That you gave EA Forms to all employees 
  • That you’ve reported all job income,  
Form E allows LHDN to check that your company has met all employer tax duties under the Income Tax Act 1967.  And here’s something many small companies don’t know: Even if you had no employees, no business, or no salary payments—you still need to file Form E by turning in a NIL return. 

When Must You Submit Form E? 

You need to submit Form E by March 31st each year, for the previous Year of Assessment (YA).  For instance: 
  • For YA 2024 → The deadline was March 31, 2025 
You can submit the form online through the MyTax Portal. LHDN doesn’t accept paper submissions anymore.  The deadlines change—so don’t ignore reminders or wait until the last minute. It could cause problems. Always check the MyTax Portal or LHDN announcements to stay updated if they announce extensions near the filing season. 

What Happens If You Miss Filing Form E? 

Not filing Form E is a big deal. LHDN doesn’t take to companies that don’t follow the rules. This form helps make sure employees report their income correctly.  Let’s break down what could happen: 

What Happens If You Miss Form E 

Offense  Consequences 
Late or non-submission  Fine ranging from RM200 to RM20,000 
Deliberate carelessness  Up to 6 months in jail, or both fine and imprisonment 
Lacking required paperwork (such as CP8D)  Rejection of submission; marked for review 
The government can enforce these penalties under Section 120(1)(b) of the Income Tax Act 1967. If you get caught, expect LHDN to keep a closer eye on your company in the future. 

Who Must Submit Form E? 

Every employer in Malaysia has to file Form E. This rule applies to: 
  • Small, medium, and big companies 
  • Partners and individual business owners 
  • Non-profits, faith-based groups, and charities 
  • Businesses not running but once signed up as employers 
  • Employers with just one employee 
Once you sign up as an employer with LHDN, you have to send in Form E each year. 

How to Submit Form E in 2025 (Step-by-Step Guide) 

In 2025, you’ll send in Form E through the MyTax Portal. The process has gotten easier compared to past years. 

Step 1: Log into MyTax 

Head to https://mytax.hasil.gov.my and enter your e-Daftar login details. Set up your account well before the deadline to avoid tech hiccups. 

Step 2: Navigate to e-Filing → e-Employer 

Once you’re in your dashboard, click e-Filing, pick e-Employer then select Form E for the current Assessment Year. 

Step 3: Enter Employer Details 

You’ll need to give: 
  • Your employer tax file number 
  • How many people you employ 
  • Confirmation that you’ve given out EA Forms 

Step 4: Upload Your CP8D File 

This step is crucial. A CP8D file is a text document that contains payroll information for each employee, including salary, bonuses, EPF, SOCSO, EIS, and PCB deductions.  If you use Info-Tech Payroll, the system creates the CP8D file in the format LHDN needs—helping you avoid formatting issues. 

Step 5: Review & Submit 

Check all details again, sign the form , and send it in before 31 March 2025. 

The CP8D File: Why Is It So Essential? 

Think of the CP8D file as the engine that powers Form E. Without it, LHDN can’t check salary info, employee IDs, or PCB records—so they’ll turn down your submission.  A good CP8D file has: 
  • Full names and IC/passport numbers 
  • Total yearly pay, commissions, bonuses 
  • EPF, SOCSO, and EIS payments 
  • PCB tax cuts for each month 
If something’s missing or wrong, LHDN will say no to the file and flag your submission for a closer look. 

Common Mistakes Employers Make (and Why They Cost a Lot) 

While Form E is easy to fill out tiny mistakes can cause delays or outright rejection. Here’s a list of errors employers often make: 

Common Form E Mistakes 

Mistake  Why It’s a Problem 
Not uploading CP8D  Submission is incomplete; gets rejected 
Entering wrong employee count  It raises red flags for LHDN 
Late submission  It can trigger hefty fines 
CP8D file errors  The system rejects them 
EA Forms not issued  Employees can’t file their own taxes 
To avoid these slip-ups, it’s best to use payroll software that creates CP8D, EA Forms, and tax reports on its own—all in line with LHDN rules. 

How EA Forms Connect to Form E 

EA Forms and Form E go hand in hand. 
  • EA Forms → Employees use these to file their personal taxes 
  • Form E → Employers use this to report all employee income to LHDN 
You can’t complete Form E without issuing EA Forms first. Any differences between the two can cause compliance problems and might trigger an audit. 

The Real Impact of Form E on Employers 

Turning in Form E isn’t just about filling out papers. It has a direct effect on: 
  • Your company’s tax standing 
  • How much your employees trust you 
  • How likely you are to be audited 
  • Your track record with LHDN 
Submitting late or incorrect forms can have long-term effects., submitting on time and boosts your company’s management and eases worries about audits. 

To Wrap Up 

Form E might seem like a basic yearly form, but it’s crucial in Malaysia’s tax reporting system. Missing the due date—or filling it out wrong—can lead to penalties, holdups, and needless problems.  The easiest way to follow the rules is to use software to handle your payroll papers.  Info-Tech’s Payroll Software creates: 
  • EA Forms 
  • CP8D files 
  • Form E submission details 
  • EPF, SOCSO & EIS contributions 
This eliminates uncertainty, lowers risk, and makes sure you’re always punctual.  Get in touch with us today to see a free demo, and we’ll make Form E filing a breeze for you. 

Frequently Asked Questions:

Do Malaysian companies have to file Form E?

Yes. Every employer—whether active or not—must turn in Form E to LHDN each year. 
You need to submit it by March 31 every year for the previous Year of Assessment. 
Yes. You still need to file a NIL return even if you didn’t pay any wages. 
Your filing won’t go through because Form E needs all payroll records. 
Yes. Info-Tech Payroll creates EA Forms CP8D, and Form E data on its own. This makes sure it follows all LHDN rules.