Year-End HR & Payroll Tasks for Malaysian Employers
A Practical Guide to Income Tax Submissions & Key LHDN Forms
As the year comes to a close, Malaysian employers must complete several statutory HR and payroll obligations, particularly those related to employee income tax reporting to LHDN (Lembaga Hasil Dalam Negeri Malaysia).
Missing deadlines or submitting incomplete information can lead to penalties, audit risks, and unnecessary back-and-forth with LHDN. This guide outlines the key year-end income tax forms employers should be aware of, what each form is for, and the information it contains.
1. EA Form – Employee’s Statement of Remuneration
What it is
The EA Form summarises an employee’s total income for the year and is issued by the employer to each employee.
Who needs it
All employees, including directors and contract staff who are taxed under employment income.
Key information included
- Employee details (name, IC/passport, tax number)
- Total salary, allowances, bonuses, commissions
- Benefits-in-kind (BIK) and perquisites
- EPF, SOCSO, EIS contributions
- Monthly Tax Deduction (PCB) deducted during the year
Deadline
- Must be provided to employees by 28 February of the following year
Employees rely on this form to complete their individual income tax return (e-Filing).
2. E Form & CP8D – Employer’s Annual Return
E Form
What it is
The E Form is the employer’s annual declaration submitted to LHDN, confirming details of the company and the number of employees.
Key information included
- Employer’s business details
- Total number of employees
- Declaration of compliance
Deadline
- 31 March (manual submission)
- 15 May (e-Filing)
CP8D Form
What it is
The CP8D is a detailed schedule submitted together with the E Form.
Key information included
- List of all employees
- Total remuneration paid to each employee
- PCB deducted for the year
- EPF contributions
Together, the E Form + CP8D allow LHDN to reconcile employer records with employees’ tax filings.
3. CP58 Form – Payments to Non-Employees
What it is
The CP58 Form reports payments made to individuals who are not employees, such as:
- Freelancers
- Consultants
- Trainers
- Agents
- Part-time or contract workers (not on payroll)
Key information included
- Payee details (name, IC, tax number)
- Nature of services provided
- Total amount paid during the year
Deadline
- Must be prepared and provided to the payee by 31 March
This form helps LHDN track taxable income outside of formal employment.
4. PCB (II) Form – Monthly Tax Deduction Summary
What it is
The PCB (II) Form is a year-end summary of Monthly Tax Deductions (PCB) made for each employee.
Key information included
- Total PCB deducted throughout the year
- Adjustments made (if any)
This information should align with:
- EA Forms
- CP8D submission
- LHDN payment records
Any mismatch may trigger LHDN queries or audits.
5. CP22, CP22A & CP21 – Employee Status Changes
These forms must be submitted when there are changes to an employee’s employment status, not strictly year-end, but often reviewed during year-end audits.
CP22 – New Employee Notification
- Submitted when hiring a new employee
- Provides employee details and employment start date
CP22A – Cessation of Employment (Malaysia)
- Submitted when an employee resigns, retires, or is terminated
- Employer must withhold final payments until tax clearance is confirmed
CP21 – Employee Leaving Malaysia
- Submitted when an employee leaves Malaysia for more than 3 months
- Employer must retain monies due to the employee until tax clearance
Failure to submit these forms correctly can result in penalties and employer liability.
Final Year-End Payroll Checklist for Employers
Before closing your payroll year, ensure that:
- All payroll figures are finalised and reconciled
- PCB deductions match LHDN payment records
- EA Forms are accurate and complete
- CP8D details align with employee records
- CP58 forms are prepared for non-employees
- Employee movement forms (CP22/CP22A/CP21) are up to date
Struggling with Year-End Payroll Compliance?
Are you finding year-end payroll and tax submissions overwhelming — or discovering that your current payroll system does not adequately support EA Forms, CP8D, PCB reconciliation, or statutory reporting requirements?
Many Malaysian employers face challenges not because of a lack of effort, but because their payroll solution is not designed to handle local compliance efficiently.
JustLogin HR & Payroll is built to support Malaysian statutory requirements, helping employers generate accurate payroll reports, manage tax-related data, and stay compliant with LHDN obligations — without manual workarounds.
Book a demo of JustLogin HR & Payroll to see how it can simplify your year-end payroll tasks and support your compliance needs with confidence.