As an employer in Malaysia, you have specific tax responsibilities beyond just running payroll. LHDN expects timely submissions of several forms, accurate monthly deductions, and proper employee notifications. Here's what you need to manage.
PCB must be calculated and remitted to LHDN by the 15th of the following month. Late remittance can result in fines from RM200 to RM20,000, imprisonment for up to 6 months, or both.
Must be provided to all employees by end of February each year. Common errors include omitting Benefits-in-Kind (company cars, phones) and failing to report tax-exempt allowances.
Due by 31 March 2026 (e-Filing). All companies must submit Form E — even those with no employees. The figures on Form E must match the sum of all issued EA forms.
When an employee resigns, retires, or leaves Malaysia for more than 3 months, you must notify LHDN and withhold final salary for 90 days or until a tax clearance letter is received.
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This article is informed by and restructured from content published by trusted Malaysian sources. For the original in-depth guide, visit:
QuickHR Malaysia — https://quickhr.my/resources/blog/lhdn