Kuala lumpur: The Inland Revenue Board (LHDN) has reminded all employers to ensure proper handling of their employees' tax matters to prevent any tax-related issues. LHDN Corporate Services Department senior executive II Sharifah Hakimah Syed Abu Bakar emphasized the crucial role of employers in ensuring proper tax administration, which includes registering for the Employer Tax Identification Number (TIN) or TIN E through the e-Daftar service on the MyTax portal.
According to BERNAMA News Agency, employers are also mandated to submit Forms E and C.P.8D, and prepare and submit the EA Remuneration Statement for the private sector and the EC form for the government sector. Sharifah Hakimah advised employers to contact LHDN directly or use official channels for information to avoid misunderstandings and errors in taxation.
She highlighted the importance of regularly updating employees' information, including marital status, number of children, and income, as these details directly affect the monthly tax deduction (PCB). Employees may inform their employers of individual deduction and rebate claims for PCB purposes using Form TP1 twice a year, while details of previous employment are submitted via Form TP3. Employers must notify each employee about these forms to ensure they receive the full benefit of the tax relief they are entitled to.
Complete documents relating to income, PCB, forms, and salary statements must be retained for up to seven years for audit and tax compliance purposes. Employers are also responsible for notifying LHDN of new taxable employees within 30 days of employment commencement by submitting Form CP22. Starting September 1, 2024, this form must be submitted via the e-CP22 application on the MyTax portal.
Additionally, employers must inform LHDN of any change in employee status, such as termination of employment or death, by submitting Form CP22A for the private sector or Form CP22B for the public sector. This form must be submitted 30 days before an employee's termination date, or within 30 days of notification of death, to enable HASiL to issue a Tax Clearance Letter (SPC).