Benefits in kind on EA
Do I include the company car in the EA form?
The situation
Benefits in kind, such as a company car or housing, are part of employment income and must be shown on the EA.
The law
- Sec 83, Income Tax Act 1967: Employer furnishes Form E by 31 March and gives each employee Form EA by end of February
- Sec 107, Income Tax Act 1967 and Income Tax (Deduction from Remuneration) Rules 1994: Employer deducts monthly tax (PCB / MTD) and pays it by the 15th of the next month
What it means for you
Values follow LHDN's prescribed methods or formula. Leaving them out understates the employee's income and can bring penalties. Include them in PCB where required.
What to do
- List benefits per employee.
- Value them using LHDN methods.
- Show on EA.
- Adjust PCB.
We can do this for youEmployer year-end: Form E, EA forms and HRD Corp levy: MYR 500