What is the CP58?
It is a statement of monetary & non-monetary incentive payment to an agent, dealer or distributor pursuant to Section 83A of the Income Tax Act 1967.
CP58 has 2 categories:
1. Monetary payment: Payment in cash. For examples, commission and bonus.
2. Non monetary payment: Included car, house, travel ticket, accommodation, ground tour, food & drinks.
Who are required to prepare CP58?
All companies need to prepare and render to its agents, dealers and distributors if the amount of monetary and non monetary incentive exceeds RM5,000.00 during the calendar year.
When to submit CP58?
Furnish to agent, dealer and distributor before 31st March on the following year;
Furnish to LHDN - Only need to submit upon request by IRB.
What if you fail to furnish CP 58 to LHDN during the notice in writing?
Failure to furnish is an offence under subsection 120(1) of the Income Tax Act 1967.
Payer company liable fine of not less than RM200.00 and not more than RM20,000.00 or to imprisonment for a term not exceeding six months or both.
However, if LHDN request for listing of CP58 information, a taxpayer company is required to submit all information including amounts below RM5,000.00
IRB Official Guideline on CP58
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