Every employer in Malaysia — regardless of company size — has annual tax reporting obligations.
One of the most important is submitting CP8D (Form E) to Lembaga Hasil Dalam Negeri (LHDN).
Failure to submit accurately and on time can result in penalties, audits, and unnecessary compliance risk.
This employer guide explains:
-
What CP8D is
-
Who must submit it
-
Submission deadlines
-
Common filing mistakes
-
Operational best practices for HR & payroll teams
What Is CP8D (Form E)?
CP8D, commonly referred to as Form E, is an annual employer tax return submitted to LHDN.
It reports:
-
Employee income
-
Benefits and allowances
-
Tax deductions (PCB)
-
Employer statutory contributions
This allows LHDN to reconcile employer payroll data with employee tax filings.
Difference Between Form E and CP8D
Many employers confuse these two documents.
They are related — but not identical.
Both must be submitted together via MyTax e-Filing.
Who Must Submit CP8D?
Under Section 83 of the Income Tax Act 1967, employers must submit CP8D annually if they have employees.
General Rule
✔ If your business has employees → CP8D is compulsory
✖ If no employees → CP8D may not be required (with exceptions)
Company Type Overview
-
Sdn Bhd & Berhad – Must submit Form E annually (even if no employees)
-
SMEs & Sole Proprietors – Required if they employ staff
-
Partnerships – Required if employees are hired
-
Individual personal employers (e.g. domestic helpers) – Not required
Once a company hires even one employee, it must:
-
Register an Employer “E” File with LHDN
-
Submit Form E and CP8D annually
This applies regardless of employee salary level.
CP8D Submission Deadline
CP8D must be submitted via MyTax e-Filing by:
31 March every year
Employers should finalise payroll reconciliation early to avoid last-minute submission risks.
Penalties for Late or Non-Submission
Under Section 120(1)(b) of the Income Tax Act 1967, failure to submit may result in:
-
Fine between RM200 and RM20,000
-
Imprisonment up to six months
-
Or both (in serious cases)
Extensions may be granted by LHDN in limited situations — but approval is not guaranteed.
Best practice: file early.
How to Submit CP8D Online (Employer Process)
Submission is done via the LHDN MyTax portal.
Basic Steps:
-
Log in to MyTax
-
Select Form E (CP8D) submission
-
Complete employer and employee details
-
Upload required CP8D file
-
Submit and retain e-E Acknowledgement Receipt
Always keep submission proof for audit purposes.
How to Amend CP8D After Submission
Currently, CP8D cannot be edited directly in the MyTax system after submission.
If corrections are required:
-
Review original submission
-
Prepare:
-
Original e-E Saraan copy
-
e-E acknowledgement receipt
-
Corrected CP8D file (in required format)
-
-
Email amendment request to:
pindaanE&cp8d@hasil.gov.my
LHDN will review and notify once correction is processed.
This is why payroll reconciliation before submission is critical.
Example of CP8D Form (Form E/Borang E) Submission
Key Sections in CP8D Employers Must Complete
HR and payroll teams should ensure accuracy in the following areas:
1. Employer Information
-
Employer tax number (No. Majikan E)
-
Company name
-
Year of assessment
2. Employee Details
-
Tax reference number
-
NRIC / Passport number
-
Employee category
-
Full legal name
3. Income Breakdown
-
Gross salary
-
Benefits-in-kind
-
Housing benefits
-
ESOS (if applicable)
-
Tax-exempt allowances
4. Tax Deductions
-
PCB deductions
-
Zakat deductions
-
TP1 claims
-
Child relief declarations
5. Employer Contributions
-
EPF (KWSP)
-
SOCSO (PERKESO)
-
EIS
These must match payroll records exactly.
Mismatch increases audit risk.
Special Situations Employers Must Not Overlook
Newly Registered Companies
If no employees → CP8D may not be required.
Once you hire your first employee → submission becomes compulsory.
Employees Who Resign or Leave Malaysia
Employers must:
-
Submit CP21 (Tax Clearance)
-
Finalise PCB deductions
-
Inform LHDN appropriately
Contract, Part-Time & Temporary Employees
All paid employees must be included in CP8D:
✔ Full-time
✔ Part-time
✔ Contract staff
✔ Paid interns
✔ Temporary workers
Freelancers are only included if legally classified as employees.
Common CP8D Filing Mistakes Employers Should Avoid
To reduce compliance risk, avoid:
❌ Incorrect employee tax numbers
❌ Missing part-time or contract employees
❌ Misclassification of taxable vs non-taxable income
❌ PCB calculation errors
❌ Late submission after 31 March
❌ Mismatch between payroll and declared contributions
CP8D errors often originate from weak payroll data consolidation.
Operational Best Practice for HR & Payroll Teams
To ensure smooth CP8D submission:
-
Reconcile payroll monthly (not annually)
-
Validate employee tax numbers upon onboarding
-
Ensure PCB calculations are accurate
-
Maintain structured payroll documentation
-
Generate CP8D-ready reports directly from payroll system
Using an integrated HR & payroll system reduces manual consolidation risk during tax season.
Frequently Asked Questions
What is CP8D and why is it required?
CP8D is the detailed annual tax report submitted by employers to LHDN listing employee income and deductions.
What happens if I miss the deadline?
Late submission may result in fines between RM200–RM20,000 or imprisonment.
How do I confirm successful submission?
Check status via MyTax portal and retain your e-E acknowledgement receipt.
What documents should employers keep?
-
Submitted CP8D
-
Form E
-
e-Filing acknowledgement
-
Payroll records
-
Contribution summaries
Is CP8D different from Form E and EA Form?
Yes.
-
Form E → Employer declaration
-
CP8D → Employee income breakdown
-
EA Form → Issued to employees for personal tax filing
Final Employer Takeaway
CP8D submission is not just an annual administrative task.
It is a compliance obligation directly linked to:
-
Payroll accuracy
-
PCB deductions
-
Statutory contribution reporting
-
Audit readiness
Errors are preventable — but only if payroll records are structured and reconciled consistently.
For Malaysian employers, preparation and system-based payroll management make CP8D filing significantly smoother, safer, and compliant.
