Every year when Malaysia’s tax season begins, HR teams and employees often ask the same question:

“If PCB has already been deducted from salary every month, do employees still need to submit e-Filing?”

The short answer is yes.

Even when Potongan Cukai Bulanan (PCB) has been deducted throughout the year, most employees in Malaysia still need to submit their income tax return through e-Filing.

For employers and HR teams, understanding this process is important because accurate payroll reporting and EA preparation directly affect employees’ tax submissions.

This guide explains:

• Whether employees still need to file e-Filing when PCB is deducted

• Key e-Filing dates employers should know

• Employer responsibilities during tax season

• Why accurate payroll records are essential

When Does e-Filing Open in Malaysia?

Each year, the e-Filing system opens for taxpayers to submit their income tax returns.

For Year of Assessment (YA) 2025, the system officially opens on:

📅 1 March 2026

Taxpayers can submit their returns through the MyTax Portal managed by the Inland Revenue Board of Malaysia.

Once the system opens, individuals and businesses can begin submitting their tax forms online.

Key e-Filing Deadlines Employers Should Know

While e-Filing mainly involves individual taxpayers, employers must also meet several important reporting deadlines.

For HR teams, the Form E submission deadline is particularly important, as it confirms employer payroll reporting to LHDN.

PCB Already Deducted — Why Employees Still Need to File e-Filing

Many employees assume that once PCB is deducted monthly, their tax obligations are complete.

However, PCB is only an estimated monthly tax deduction, not the final tax calculation.

Employees still need to submit their income tax return to confirm their actual tax position.

Filing e-Filing allows employees to:

✔ Confirm Actual Income
Employees verify that the income reported by the employer matches their tax records.

✔ Claim Eligible Tax Relief
Tax relief may reduce the final tax payable. Examples include:

• Lifestyle expenses

• Insurance premiums

• Education fees

• Childcare expenses

✔ Receive Tax Refunds
Sometimes PCB deductions exceed the final tax payable. When employees file their tax return, they may receive a tax refund from LHDN.

Employer Responsibilities During Tax Season

Although e-Filing is submitted by employees, HR departments play an important role in supporting the process.

Employers must ensure payroll records and reporting are accurate.

1. Submit Form E to LHDN

Form E is the employer’s annual declaration submitted to the Inland Revenue Board of Malaysia.

It confirms that the employer has reported employee remuneration and PCB deductions for the year.

Key points employers should note:

• Submission deadline: 31 March (manual) or 30 April (e-Filing)

• Applies to companies that employ staff

• Includes payroll information for the previous year

2. Prepare and Issue Form EA

Employers must issue Penyata EA (Form EA) to employees each year.

This document provides the information employees need to complete their tax return.

Form EA includes:

• Total annual salary

• Allowances and bonuses

• EPF contributions

• PCB deductions

• Benefits provided by the employer

Best practice is to issue EA forms before March so employees have enough time to complete their tax filing.

3. Ensure Accurate PCB Records

PCB (Potongan Cukai Bulanan) is the monthly tax deduction taken from employee salaries.

HR teams must ensure:

✔ PCB calculations follow LHDN guidelines
✔ Payroll data matches tax records
✔ No missing deductions

Incorrect PCB calculations may cause tax underpayment or filing issues for employees.

How Employees Submit e-Filing via the MyTax Portal

Employees can submit their tax return online through the MyTax Portal.

The general steps include:

Step 1: Log In

Visit the MyTax portal and log in using:

• Identification number (IC)

• Registered password

Step 2: Select the Correct Form

Navigate to:

ezHasil → e-Filing

Employees should choose:

• Form BE – individuals with employment income only

• Form B – individuals with business income

Step 3: Fill in Income Information

Employees refer to Form EA provided by the employer when filling in their income details.

Step 4: Submit the Form

After reviewing the information, submit the form through the system.

Step 5: Save Submission Confirmation

Once submitted, employees should download and keep the confirmation slip as proof of submission.

Important Documents Employees Should Prepare

HR teams can help employees prepare for tax filing by reminding them to keep these documents ready:

✔ Form EA from their employer
✔ Tax relief receipts (insurance, education, lifestyle purchases)
✔ Medical or health check-up receipts
✔ Zakat payment receipts (if applicable)
✔ Bank account details for tax refund payments

Preparing these documents early helps employees complete their e-Filing more smoothly.

What Happens If Tax Filing Is Late?

Failing to submit tax returns on time may result in penalties under the Income Tax Act 1967.

Possible consequences include:

❌ Late filing penalties
❌ 10% tax increase on unpaid tax
❌ Additional 5% penalty after 60 days if the tax remains unpaid
❌ Possible travel restrictions in serious cases

Submitting tax returns on time helps avoid these penalties.

HR Tip: Help Employees Prepare Early

HR teams can reduce tax season stress by helping employees prepare in advance.

Some practical steps include:

• Issuing Form EA early

• Ensuring payroll records are accurate

• Reminding employees about tax filing deadlines

• Providing basic guidance on the filing process

Clear communication between HR and employees helps ensure a smoother tax filing experience for everyone.

Simplify Payroll and Compliance with the Right HR System

Preparing Form EA, managing PCB deductions, and maintaining payroll records can be time-consuming if done manually.

A structured HR and payroll system helps employers:

✔ Calculate PCB and EPF contributions accurately
✔ Maintain organised payroll records
✔ Generate payroll reports efficiently
✔ Reduce reporting errors during tax season

With Pandahrms, employers can manage payroll, employee records, leave, and claims within one integrated HR platform.

This helps HR teams streamline payroll operations while supporting compliance with Malaysia’s tax and employment regulations.

Conclusion

Even when PCB has already been deducted from employee salaries, individuals in Malaysia are generally still required to submit their income tax return through e-Filing.

This process allows them to confirm their income, claim eligible tax relief, and receive any tax refunds they may be entitled to.

For employers, ensuring accurate payroll records, correct PCB deductions, and timely issuance of Form EA is essential to help employees complete their tax filing smoothly.

By adopting a reliable HR and payroll system such as Pandahrms, businesses can simplify payroll management while maintaining compliance during Malaysia’s tax season.