Guide to TP3 Form 2024 in Malaysia
Introduction
The Malaysia Inland Revenue Board (LHDN) mandates all newly hired employees to report their income from previous employments within the same tax year through the TP3 Form. This essential process is vital for the accurate calculation of Monthly Tax Deduction (MTD) or Potongan Cukai Bulanan (PCB) amounts within the payroll system. This guide is designed to offer detailed insights into the utilization of the TP3 Form for the year 2024, ensuring both employers and employees comply with Malaysia’s tax regulations efficiently.
Understanding the TP3 Form
What is the TP3 Form?
The TP3 Form is a compulsory document for new employees to report their income from previous employments within the same tax year. The primary purpose is to assist new employers in accurately calculating Monthly Tax Deduction (MTD) amounts, ensuring compliance with Malaysia’s personal income tax laws.
Who is Required to Complete the TP3 Form?
– New hires with previous employment income in the current year
– Recent graduates and new hires without prior income in the current year are expected to submit the form with a blank amount, duly signed.
Key Components of the TP3 Form
Part A: Previous Employer’s Information
– A1: Company Name
– A2: Employer Tax Number (if applicable)
Part B: Personal Information
– B1: Name
– B2: IC Number
– B4: Income Tax File Number
Part C: Previous Employment Income
– C1: Taxable Employment Income for Current Year (e.g., Basic Salaries, OT, Allowances, etc.)
– C3: Total EPF Employee Contribution for Current Year (excluding Employer portion)
– C4: Zakat Paid in Current Year (if applicable)
– C5: Total Tax Paid in Current Year (excluding CP38)
Part E: Declaration
– Signature and Date
Important Notes:
– Round all figures to the nearest Ringgit without decimals
– Ensure accurate year-to-date income reporting, not annual income estimations
Utilizing the TP3 Form for Payroll Processing
How to Use the TP3 Form:
1. Accurate PCB/MTD Calculation: Utilize the figures provided in the TP3 Form to calculate PCB/MTD amounts accurately within the payroll system.
2. Data Entry: Enter the information from the TP3 Form into the payroll system, ensuring consistency and accuracy.
Responsibilities of Employers:
– Ensure employees complete and sign the TP3 Form.
– Retain the TP3 Forms for potential LHDN audits.
– Input the data into the payroll system.
For Employees Not Previously Employed in the Current Year:
– Sign the TP3 Form.
– Leave amounts blank or enter ‘0’.
Download the TP3 Form for 2024
– Download the TP3 Form in English
– Muat turun Borang TP3 dalam Bahasa Melayu
– Muat turun Nota Penerangan Borang TP3 dalam Bahasa Melayu
Conclusion
The TP3 Form remains a vital document for ensuring transparent and precise payroll processing for new hires in Malaysia. Both employers and employees must recognize its significance and ensure full compliance. By following the outlined practices, new hires can enjoy a seamless transition, and organizations can maintain adherence to LHDN’s regulations.
