The tax season is from March to July every year. Part-time workers have until April 30 to complete their BE forms and business owners have until June 30 to complete their B or P forms.
During this time, wage earners will receive an employment income statement from their employer, commonly known as an EA form. This EA form will clearly show the income, benefits, withholdings, provident funds, etc. that the wage earner has received during the past year. Based on the EA form given by the employer, the wage earner can file his or her income tax return, or tax return for short.
Since the government has prescribed the format of the EA form, the EA form is the same for each company, the only difference is the salary of the wage earner and other items.
Generally speaking, the EA form is divided into 7 items from A to F. Item A is for personal information of the employee, items B and C are for chargeable income, item D is for total deductions, E is for provident fund and social insurance contributions, and F is for deferred payment and other details.
EA Form
Section A: Employee Information
The employer will fill in the employee information in this section, including name, position, employee number, ID card number, employee provident fund number, etc. If the employee concerned has been employed for less than one year, e.g. joined or left in the middle of last year, the dates of employment and departure will be shown.
Part B: Employment Income, Benefits and Accommodation
(Excluding tax-free allowances/perquisites/gifts/benefits)
This income section is divided into 6 categories. If the compensation package is relatively simple and the employer does not provide material benefits such as car or accommodation, usually only 6 types of income for the past year are specified in the first category.
If the package includes material benefits, the employer must calculate their value according to the IRS formula. If the employee does not understand the amount, he/she should check with the employer.
According to Section 13(1b) of the Income Tax Act, material benefits or facilities provided by the company are not convertible into money and are provided or paid for by the employer for the benefit of the employee, spouse, family, etc.
1. salary, wages or paid leave (including overtime allowance)
-Fees (including director’s fees), commissions or bonuses
-Total tips, additional cash awards, bonuses or gratuities, or other allowances
-Income tax absorbed by the employer on behalf of the employee
2. deferred payments and other payment details from prior years
3. Value of material benefits (in-kind value).
(a) Car (details of car payment, date provided by company, value of car and gasoline, driver to be specified)
(b) Utilities, telephone and other benefits
(c) Home benefits (specify relevant furniture, air conditioners, curtains, carpets, kitchenware, etc.)
(d) Domestic helper and gardener
(e) Travel and vacation benefits
(f) Other (e.g. food and clothing)
4. value of accommodation benefits (address to be specified)
5. Unauthorized pension, plan or association refunds
6. unemployment compensation
Section C: Pensions and Other
This column will indicate not only the employee’s pension, but also annuities or other periodic payments.
Section D: Total Deductions
1. monthly withholding tax paid to the tax office this year
2. CP 38 withholding (i.e. the tax office issues a “payroll deduction order” to the employer of a taxpayer who owes tax, requesting direct deduction of unpaid income tax from the employee’s salary; the total amount deducted is shown here.)
3. Islamic Aid (Zakat, also known as Zakat)
4. approved donations or gifts
5. deductions claimed by employees on TP 1 forms
6. qualifying child deductions
Section E: Total amount of approved pension or provident fund, fund or society contributions
This column will indicate the name of the relevant provident fund, usually the employee provident fund; and the total amount contributed by the employee. The employer’s portion does not need to be indicated here. Also, the amount of social insurance paid.
Section F: Payment in arrears and other payment details for previous years
According to the IRS, if an employee was not paid employment income in the current year and received payment in the tax year in which the tax return was filed, the payment must be indicated in this field. For example, if the payment was supposed to be received in 2020 but was received in 2021, the payment should be indicated on the EA form for tax year 2021.
