What is the TP3 Form?
As per Malaysia Inland Revenue Board's (LHDN) requirements, it is compulsory for newly hired employees to notify their new employer of any previous employment income (with past employers) in the current year.
These employees are required to complete and submit the TP3 Form for reporting purposes to their new employer - this is so that new employers are able to continue accurately calculating PCB/MTD amounts for the employees in the current year when processing payroll.
After receiving a TP3 form from new employees, how do we use the figures in the form to accurately calculate PCB/MTD amounts in Talenox?
The figures in the TP3 form will include the following:
- Previous taxable employment income earned for the current year
- Total EPF contribution so far for the current year
- Total tax paid so far in the current year (e.g. PCB/MTD, SOCSO)
- Zakat paid so far in the current year (if applicable)
These amounts reported can then be used to ensure accuracy of PCB/MTD calculation in Talenox - please do refer to the guide to learn how to set this up in Talenox correctly.
Generating the TP3 form for a resigning employee
For a resigning employee, the admin of the company's Talenox account will be able to generate the TP3 form for the employee before they depart in the system directly.
To generate the TP3 form, please follow these steps accordingly:
- For the resigning employee, head to their employee profiles and key in their Resign Date under "Employment Details"
- Next, head to Payroll > Payroll settings > TP3 and follow the steps on the page to generate the form for the employee
- Ensure that the values reflected in the form are correct; Edits can be made to the values in the form if needed
- Download or print out a copy of the TP3 form generated to pass to the employee on their last day of employment with the company