What Is CP58?
CP 58 is an income statement that shows all incomes in the form of monetary and non-monetary incentives. Examples of monetary incentives are allowances and bonuses. While examples of non-monetary incentives are houses, cars, flight tickets. CP 58 form is given by the company to their agents, dealers, and sales distributors. It is somewhat similar of an EA Form that is given to employees in the private sector.
Who needs to fill in a CP58 form?
It has been specified by the IRBM ( Inland Revenue Board of Malaysia) / LHDN (Lembaga Hasil Dalam Negeri), that companies who reimburse their agents with more than RM 5000 in cash or non-monetary incentives during the year are required to produce a CP58 form for their agents. CP58 form will only be given to agents who receive annual incentives of less than RM5000 upon request.
You do not have to submit CP 58 form to IRBM/LHDN. This is why it is often overlooked and ignored. But the CP 58 comes in handy if the tax office requests to see a detailed breakdown of all the rewards and incentives that have been given to your agents. The original version of the CP58 form must be kept by the company for 7 years for the purpose of tax audits. A copy version should be given to the agents, dealers, and distributors.
When must I submit my CP 58 from?
All CP 58 forms must be distributed to agents, dealers, and distributors by 31 March in the year.
Any company who fails to provide the CP58 form to their agents can be found guilty and can be fined for no less than RM200 and not more than RM20,000 or face imprisonment for a period of 6 months.
What incentives are exempted from the CP 58 from?
Personal gifts, trade discounts, promotional gifts (free gifts), reimbursements, management fees, subcontract payment, special / preferential treatment given by the company.