What is TP3 Form?
TP3 form is compulsory to be completed by the new employees who joined a company during middle of the year.
This is part of Malaysia Inland Revenue Board's (LHDN) requirements.
For more information, please visit LHDN official website here
What is the purpose of TP3 Form?
The purpose of TP3 form is to notify the new employer on the information relating to the new employee's employment with previous employer in the current year.
Why the TP3 Form is compulsory?
Completed TP3 form is crucial for the new employer to continue accurately calculating PCB/MTD amounts when processing payroll for the new employees within current year.
TP3 form is also compulsory for the new employees who were not previously employed during the year. They need to sign the form and enter “0” in the amount boxes – or simply leave it blank.
Side Note for Employers =
The Employers should keep all completed TP3 Form and furnish it to LHDN whenever requested during a PCB audit.
To better understand the use of TP3 form, please refer to an example below =
Example:
Current Year: 2021
Nurul Mustafa recently joined Company Terbaik Sdn Bhd on 1st October 2021.
Previously, she was working at Company Megah Sdn Bhd from 1st January 2021 until 30th September 2021.
Nurul Mustafa has past employment income history from former employer within the current year (Jan – Sep 2021). Hence, it is compulsory for her to issue completed TP3 to Company Megah Sdn Bhd when she starts her day 1 in the new company.
What to fill up in the TP3 Form?
You would need to fill up the following sections in the TP3 form;
1. C1: Total monthly gross salary and additional salary including taxable allowance/ perquisites/ gifts/ benefit
2. C3: Total EPF or Other Approved Fund contributions on all remuneration (monthly remuneration and additional remuneration)
3. (If any) C4: Total zakat rebat or Relief levy rebate for umrah travel / travel for other religious purposes (Limited to 2 lifetime claims)
4. C5: Total MTD (not included CP38)