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The TP3 form (Borang PCB/TP3) is an LHDN form that a new employee gives to their new employer. It lists the income, EPF contributions, zakat and monthly tax deductions (PCB) from any previous employer earlier in the same calendar year. Your payroll team uses those figures to calculate the new hire's PCB correctly from their very first payslip.
If you hire in Malaysia, TP3 belongs on your onboarding checklist. In this guide, we'll walk you through what the form covers, who needs to fill it in, how to complete each section, and how it fits alongside TP1 and TP2.
Key takeaways
- TP3 captures a new hire's income and tax deductions from previous employers in the current year.
- The employee fills it in and gives it to the employer. The employer keeps it on file and does not send it to LHDN.
- Collect it before the new hire's first payroll run so their PCB reflects their full-year income.
- Keep signed TP3 forms for 7 years and have them ready if LHDN asks during a PCB audit.
- The current version is PCB/TP3 (1/2026), available on the LHDN website.
What is the TP3 form?
The TP3 form is the official Individual Tax Deduction and Rebate Claim Form for Monthly Tax Deduction Purposes, issued by the Inland Revenue Board of Malaysia (LHDN, also called HASiL). It's prescribed under Section 152 of the Income Tax Act 1967, and the current version is PCB/TP3 (1/2026).
In plain terms, TP3 is a handover note between employers. It tells you what your new hire has already earned, contributed and paid in tax this year, so your payroll can pick up where their last employer left off.
Why TP3 matters for PCB
PCB (Potongan Cukai Bulanan), also called monthly tax deduction or MTD, is calculated on a cumulative basis. Each month's deduction depends on the employee's income and deductions for the year so far, projected across the full year.
When someone joins you mid-year, your payroll system only sees the salary you pay. Without TP3, it has no record of the income they earned from January until they joined you. That gap can lead to:
- Under-deduction, where the employee pays too little PCB during the year and ends up with a tax balance when they file their return.
- Over-deduction, where reliefs or deductions are applied incorrectly and the employee waits for a refund.
- Audit questions, since LHDN can ask you to show the figures behind your PCB calculations.
A quick example
Aisyah worked at Company A from January to June 2026. She joins your company on 1 July 2026. On her first day, she fills in a TP3 form with her January to June figures from Company A: total gross pay, EPF contributions, zakat and the PCB already deducted.
Your payroll team enters those figures as her opening balances. Her July PCB now reflects her full-year income, and her deductions for the rest of 2026 stay on track.
Who needs to submit a TP3 form?
LHDN's instructions on the form are clear: employers must ask new employees for a TP3 if they worked for another employer earlier in the current year. That includes employees who had more than one previous employer this year.
Many payroll teams go a step further and collect a TP3 from every new hire as standard practice. For fresh graduates or anyone who wasn't employed earlier in the year, the employee signs the form and enters RM0.00 (or leaves the amount fields blank). This gives you a signed record for every new employee and keeps your onboarding process consistent.
When should the TP3 form be submitted?
Ask for the TP3 on or before your new hire's first day, and have it in hand before their first payroll run. The form doesn't go to LHDN, so there's no LHDN filing deadline. The practical deadline is your payroll cut-off, since the figures need to be in your system before you calculate their first PCB.
Where do employees get the figures?
Employees can pull most of the numbers from their final payslip at their previous employer, which usually shows year-to-date gross pay, EPF, zakat and PCB. If a figure is missing, they can ask their former employer's HR or payroll team for a year-to-date statement.
How to fill in the TP3 form, section by section
The 2026 TP3 form has five sections, plus a deduction month and year at the top. All amounts in Sections C and D are the totals from previous employment in the current year, not from the new job.
At the top of the form, the employee fills in the deduction month and deduction year, which is the month their PCB starts with you.
Section A: Employer information
- A1 and A2: Name and Tax Identification Number (TIN) of the first previous employer.
- A3 and A4: Name and TIN of a second previous employer, if any.
If the employee had more than two employers this year, they add the rest on a separate attachment.
Section B: Employee information
- B1: Full name
- B2: MyKad or passport number
- B3: The employee's own Tax Identification Number (TIN)
Section C: Remuneration, EPF, zakat and PCB
This is the section your payroll team relies on most.
A note on C5: CP38 is an additional deduction LHDN instructs an employer to make for specific employees with outstanding tax. It isn't part of regular PCB, so it stays out of this total. We cover the difference in our guide to CP38 vs CP39 [add URL].
Section D: Deductions already claimed
Section D lists tax reliefs the employee already claimed through PCB at their previous employer, each with its annual limit. Employees only fill in the lines that apply to them. The 2026 form covers 17 relief categories, including:
- Medical, dental and check-up expenses for parents or grandparents
- Education fees for the employee
- Medical expenses for serious illness, fertility treatment, vaccinations and check-ups
- Lifestyle purchases such as books, computers, smartphones and internet bills
- Sports equipment, facility fees and gym memberships
- Childcare and kindergarten fees, and SSPN savings
- Life insurance, voluntary EPF, private retirement schemes, and education and medical insurance
- PERKESO (SOCSO and EIS) contributions
- Interest on a first home loan, for eligible buyers
Recording these amounts prevents the same relief from being counted twice across both employers.
Section E: Employee declaration
The employee signs and dates the form to confirm the information is true, correct and complete. Providing false information can lead to legal action under paragraph 113(1)(b) of the Income Tax Act 1967. An unsigned TP3 isn't complete, so check for a signature before filing it.
For line-by-line guidance, LHDN publishes explanatory notes (Nota Penerangan TP3) on its employer payroll page.
TP1 vs TP2 vs TP3: What's the difference?
All three TP forms adjust how PCB is calculated, and employees submit all three to their employer rather than to LHDN. Here's how they compare.
In short, TP1 can lower PCB, TP2 can raise it, and TP3 gives a new employer the full picture for the year so far.
Your responsibilities as an employer
TP3 is filled in by the employee, but a few steps sit with you:
- Request the form. Add TP3 to your onboarding documents so every new hire receives it before day one.
- Check it's complete. Confirm Sections A to C are filled in (or marked RM0.00) and Section E is signed and dated.
- Enter the figures into payroll. Record the Section C and D amounts as the employee's opening balances before you run their first payroll.
- Keep it for 7 years. Store signed TP3 forms securely for at least 7 years.
- Share it with LHDN on request. You don't file TP3 with LHDN, but you'll need to produce it if they ask during a PCB audit.
Common TP3 mistakes to avoid
- Collecting it after the first payroll run. Your new hire's first PCB is then calculated without their earlier income, and you'll need to correct it in later months.
- Including CP38 in C5. C5 is regular PCB only. Keep CP38 deductions out of this figure.
- Mixing taxable and tax-exempt items. Taxable pay goes in C1 and tax-exempt allowances go in C2. Combining them overstates taxable income.
- Missing a second previous employer. Ask new hires whether they had more than one job this year, and use A3, A4 or an attachment to capture them.
- Accepting an unsigned form. Without the Section E signature, the declaration isn't complete.
- Using an outdated version. LHDN updates the form, so download the current version (1/2026) from the LHDN website each year.
Keep TP3 on track with Omni
TP3 is one small form, but it's easy to lose in a busy onboarding week. Omni, our all-in-one HRIS and multi-country payroll platform, helps you build it into the way you already work:
- Onboarding checklists that send TP3 to new hires before day one and track who has returned it.
- A customizable employee database that stores each signed TP3 on the employee's record, ready for a PCB audit.
- Malaysia payroll that calculates PCB alongside EPF, SOCSO and EIS, with previous-employment figures entered as opening balances.
- AI features that help your team answer payroll and policy questions faster.
And if you're hiring across more than one country, you can run Malaysia payroll next to your other markets from one platform.
See how it works with a demo, or start a 7-day free trial.
Frequently asked questions
Is the TP3 form mandatory?
Yes, when a new employee worked for another employer earlier in the same year. LHDN requires employers to request the form from these employees. Many employers also collect it from every new hire, with RM0.00 entered where there's no previous income.
Do I submit the TP3 form to LHDN?
No. The employee gives the TP3 to their new employer, and the employer keeps it for 7 years. You only share it with LHDN if they request it, for example during a PCB audit.
Is TP3 the same as the EA form?
No. The EA form is an annual statement of remuneration that employers give employees by the end of February for the previous year. TP3 is a mid-year declaration an employee gives their new employer, covering the current year up to their start date.
What if a new hire had two or more previous employers this year?
They combine the amounts from all previous employers in Sections C and D. Sections A1 to A4 hold two employers' names and TINs, and any more go on an attachment.
Where can I download the TP3 form?
The current PCB/TP3 (1/2026) form is available on the LHDN website.
Apa itu borang TP3?
Borang TP3 ialah borang LHDN yang diisi oleh pekerja baharu dan diserahkan kepada majikan baharu. Borang ini mengandungi maklumat saraan, caruman KWSP, zakat dan PCB daripada majikan terdahulu dalam tahun semasa, supaya majikan dapat mengira PCB dengan tepat.
Cara isi borang TP3
Pekerja mengisi maklumat majikan terdahulu (Bahagian A), maklumat diri (Bahagian B), jumlah terkumpul saraan, KWSP, zakat dan PCB (Bahagian C), potongan yang telah dituntut (Bahagian D), kemudian menandatangani akuan (Bahagian E). Jika tiada pendapatan terdahulu, isikan RM0.00. [Native BM review before publishing]
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