Do I still need to file Borang E if my company has no employees?

Yes.If your company has an active employer tax file with LHDN, you are still required to submit Borang E (Nil return) even if: You had no employees during the year, or Your business was inactive Failing to submit may still trigger late filing penalties or compliance flags.

What is the difference between Borang E and CP8D?

Borang E is a summary declaration, while CP8D is the detailed breakdown. Borang E: Reports overall employer information and total employee remuneration CP8D: Contains individual employee income details, including salary, benefits, and PCB deductions Both must be submitted together, CP8D is mandatory as a supporting schedule to Borang E.

How do I submit Borang E and CP8D to LHDN?

Submission is done electronically via MyTax (LHDN portal): Log in at: https://mytax.hasil.gov.my Complete e-Filing for Borang E Upload CP8D file (in the prescribed format, usually generated by payroll software) E-Filing is the standard method and helps avoid errors and delays.

When must I issue Form EA to employees, and do I submit it to LHDN?

Deadline: By 28 February each year Submission to LHDN: Not required Form EA must be: Given to all employees who received income, and Used by them to file their personal income tax returns You can provide it: Physically, or Digitally (e.g., PDF via email)

Employer Tax Compliance 101: Navigating Borang E, CP8D, and Form EA

If you’re a business owner in Malaysia, the first few months of the year are “Employer Tax Season.”

Whether you have 100 employees or you are a solo director in a dormant Sdn Bhd, you likely have filing obligations with the Inland Revenue Board (LHDN).

Here is everything you need to know to stay compliant and avoid those pesky fines.

1. The “Big Three” Forms Explained

Form	Description	Who Prepares It?	Who Receives It?
Form EA	Statement of Remuneration. A summary of an employee’s annual earnings and deductions.	The Employer	The Employee (for their own tax filing)
C.P.8D	The detailed list of all employees’ financial data (salaries, bonuses, EPF, SOCSO, PCB).	The Employer	LHDN (submitted via MyTax)
Borang E	The Employer’s Return. A declaration form that summarizes total staff count and confirms the C.P.8D submission.	The Employer	LHDN (submitted via MyTax)

2. Filing Requirements by Business Type

Not all businesses are treated the same. Your legal structure determines whether you must file even if you have no employees.

Sdn Bhd (Private Limited) & LLP

Requirement: Mandatory to file Borang E every year.
Even if dormant? Yes. Even if the company has zero revenue and zero employees, you must submit a “NIL” Borang E.
Director’s Fees: Directors are considered employees. If the company pays director fees or salaries, these must be reported in Form EA and C.P.8D.

Sole Proprietorship & Partnership

Requirement: Only required to file Borang E if you have active employees.
No employees? You are generally exempt from filing Borang E. You only need to report your business income in your personal tax return (Borang B or P).

NGOs, Associations, & Representative Offices

Requirement: Must file Borang E if they have an active employer file (E file) with LHDN, regardless of whether they are profit-making.

3. What Information Should You Prepare?

Before logging in, have your payroll summary for the year ended December 31 ready:

Employee Details: Full names, NRIC/Passport numbers, and tax identification numbers (TIN).
Gross Salary: Includes overtime, commissions, bonuses, and allowances.
Benefit-in-Kind (BIK): Non-cash perks like company cars or housing.
Statutory Deductions: Total EPF, SOCSO, EIS, and PCB (Monthly Tax Deductions).

4. How to File & Deadlines

Step 1: Issue Form EA

Deadline: February 28
Action: Give this to your employees so they can file their personal taxes (Borang BE/B) in March/April.

Step 2: Submit C.P.8D & Borang E

Deadline: March 31 (Manual/Paper) or April 30 (e-Filing).
Portal: All submissions are now centralized at MyTax (mytax.hasil.gov.my).
The Workflow:
1. Log in to MyTax using the Director/Employer’s digital ID.
2. Select the Employer role.
3. Submit the C.P.8D via the “e-Data Praisi/e-CP8D” menu.
4. Proceed to e-Filing, e-Form, e-E to complete the final declaration.

If filing electronically via e-Filing, deadlines may be extended slightly (subject to LHDN announcements).

5. Penalties for Non-Compliance

LHDN has become increasingly strict with digital filing. Failure to submit Borang E or late submission can result in:

Fines: Between RM200 and RM20,000.
Legal Action: Potential court summons for the company directors.
Tax Audits: Inconsistent data between your Borang E and your company’s tax return (Borang C) is a major red flag for auditors.

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Disclaimer: This post is for informational purposes. For complex tax structures or specific exemptions, we recommend consulting a licensed tax agent.

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Employer Tax Compliance 101: Navigating Borang E, CP8D, and Form EA

1. The “Big Three” Forms Explained