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 said employers have a key role in ensuring proper tax administration for employees, including registering for the Employer Tax Identification Number (TIN) or TIN E through the e-Daftar service on the MyTax portal.
“Employers are also required to submit Forms E and C.P.8D, as well as prepare and submit the EA Remuneration Statement for the private sector and the EC form for the government sector.
“If there are any concerns or doubts regarding taxation, employers are advised to contact LHDN directly or obtain information through official channels to avoid misunderstandings and errors,” she said when appearing as a guest on Bernama Radio’s Tax Clinic programme today.
She said employers were also required to regularly update employees’ information, including marital status, number of children and income, as these details have a direct impact on the monthly tax deduction (PCB) from employees’ remuneration or salary.
Sharifah Hakimah said 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 inform each employee about these forms to ensure they receive the full benefit of the tax relief they are entitled to.
“All complete documents relating to income, PCB, forms and salary statements must also be kept for up to seven years for audit and tax compliance purposes,” she said.
Sharifah Hakimah said employers are also responsible for notifying the Inland Revenue Board (LHDN) of new employees who are taxable or liable to tax within 30 days of the start of employment.
“The notification of new employees must be made by submitting Form CP22 (Notification Form by Employer for New Employees). Starting Sept 1, 2024, the form must be submitted via the e-CP22 application on the MyTax portal.
“The user manual and FAQ for e-CP22 can be accessed via the MyTax user guide portal,” she said.
Sharifah Hakimah said employers were also required to inform the Inland Revenue Board (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 the employee’s termination date, or within 30 days of notification of death. This information is important to enable HASiL to issue a Tax Clearance Letter (SPC),” she said. -BERNAMA
