Many business owners assume that Form E submission only applies to companies with employees.

However, when a company has no staff, no payroll activity, or is dormant, a common question arises:

“Do we still need to submit Form E?”

The answer is YES. Submission is still mandatory, even if the company has no employees.

Failure to comply may result in penalties imposed by the Inland Revenue Board of Malaysia (LHDN).

This guide explains what employers need to know to remain compliant.

What Is Form E in Malaysia?

Form E is an annual employer declaration form submitted to LHDN.

It is used to report:

• Employee remuneration, including salary, bonuses, and benefits
• Tax deductions such as PCB
• Overall employer payroll information

Form E must be submitted together with CP8D, which contains detailed employee income records.

Do Companies Without Employees Still Need to Submit Form E?

Yes, even if your company has no employees, Form E submission is still required.

In such cases, the company must submit a NIL declaration.

This means:

• No employees are reported
• No remuneration is declared
• The submission is still completed to fulfil compliance requirements

Why Is Form E Still Required?

Even if a company is inactive or has no payroll, it remains registered with LHDN.

Upon incorporation, a company is assigned:

• A tax reference number (C number)
• An employer reference number (E number)

As long as the company exists, LHDN requires annual employer reporting.

Submitting a NIL Form E confirms that:

• The company remains compliant
• There are no employees to declare
• No payroll activity took place during the year

Important: Directors Are Considered Part of Management

One important point often overlooked is that company directors are considered part of management.

Even if:

• The company is dormant
• No salary is paid

Directors may still be regarded as reportable individuals depending on the circumstances.

For this reason, companies should not skip submission and must proceed with Form E filing.

Deadline for Form E Submission

Form E must be submitted on or before 31 March each year.

Submission is done via e-Filing (e-E) through the MyTax portal.

Late submission may result in penalties under the Income Tax Act.

Penalty for Not Submitting Form E

Failure to submit Form E may result in:

• Fines ranging from RM200 to RM20,000
• Potential legal action under Section 120(1)(b) of the Income Tax Act 1967

These penalties apply even if the company has no employees or business activity.

What About CP8D Submission?

For companies with no employees, CP8D is still submitted together with Form E as part of the NIL declaration.

However, there is an exception.

Sole proprietorships or partnerships without employees are generally not required to submit CP8D.

Key Takeaways for Employers

• Companies without employees are still required to submit Form E
• Submission must be done as a NIL declaration
• Directors may still be considered part of management
• Filing is completed via the MyTax e-Filing system
• The deadline is 31 March annually
• Non-compliance may result in significant penalties

Simplify Form E Submission with Pandahrms

Managing payroll records and tax submissions manually can be complex, especially when dealing with NIL declarations and compliance requirements.

With Pandahrms, employers can:

• Organise employee and payroll data in a single system
• Generate reports required for Form E submission
• Ensure accurate and timely compliance
• Reduce the risk of missed deadlines

This allows HR teams and business owners to maintain compliance efficiently, even for dormant or low-activity companies.

Conclusion

Even if a company has no employees or is dormant, it is still required to submit Form E in Malaysia.

The correct approach is to file a NIL declaration via e-Filing before the 31 March deadline.

Understanding this requirement helps employers avoid penalties, maintain compliance with LHDN, and ensure proper statutory reporting.

FAQs

1. If my company has no employees, do I still need to submit Form E?

Yes, Form E must still be submitted as a NIL declaration, even if there are no employees.

2. What happens if I do not submit Form E?

Failure to submit may result in penalties ranging from RM200 to RM20,000 under the Income Tax Act.

3. Do dormant companies need to submit Form E?

Yes, dormant companies are still required to submit Form E annually.

4. Are company directors considered employees?

Directors are considered part of company management and may still require reporting depending on the situation.

5. Do I need to submit CP8D if there are no employees?

For companies, CP8D is generally submitted together with Form E. However, sole proprietors or partnerships without employees are typically exempted.