To all employers, just a friendly reminder that the deadline for filing of the Employer’s Return of Remuneration (Form E 2012) is almost here. The deadline for its filing is this 31 March 2013. Failure to submit the Form E is an offence and is liable to a fine of between RM200.00 to RM2,000.00 or to imprisonment of not more than 6 months or both, under Paragraph 120(1)(b) of the Income Tax Act, 1967. As highlighted in my post 2013 Filing Programme for Income Tax Returns, a grace period of 30 days is given (i.e. the deadline is extended to 30 April 2013) for employers who choose to submit the Form E via e-filing.
Employers are required to furnish the following information in the Form E:
- the number of employees employed;
- the number of employees subject to schedular tax deductions;
- the number of new employees;
- the number of employees who have resigned;
- the number of employees who have resigned and left Malaysia; and
- any other particulars as may be required by the Director General.
In addition, it is interesting to note that according to law, the employer has to prepare and give to his/her employee the Form EA/CP 8A on or before the last day of February, while the deadline of filing of the Form E is 31 March. So please do ensure that the employees’ Form EAs are dated on or before 28 February 2013 to avoid unnecessary penalties!
What about the employers who had employees in the previous year but no longer have any employees in the year 2012? Well, an employer who has received a Form E or has done e-filing of the Form E previously must complete and file the form on or before the due date, even if it is dormant, under liquidation or has no employees. Employers must then inform the IRB via a letter if they are no longer active or are under liquidation so that the IRB can update its records. If not, they will face the unnecessary hassle (and shock!) of receiving a compound notice for non-filing of the Form E.