What is CP58? Requirements and Downloadable Form for Employers

Employers love rewarding our agents, dealers, and distributors with various incentives.

But do you know that when you give out rewards, it’s not just the reward you need to provide? You also have to issue a CP58 form.

This form isn’t just for show. It helps both your business and the agents, dealers, or distributors when it’s time to report taxes to the government.

In this article, we’ll dive into the details of CP58, when you need to use it, and where you can download the form. Let’s get started!

What is CP58?

CP58 is a form that Malaysian companies must provide to their agents, dealers, or distributors who receive commissions, incentives, bonuses, or similar payments during the previous year.

Think of it as the equivalent of the EA form for employees, but specifically for individuals who aren’t on the company’s payroll.

Under Section 83A(1) of the Income Tax Act 1967, CP58 helps businesses and recipients accurately report their income to LHDN (Lembaga Hasil Dalam Negeri).

While you don’t have to submit CP58 to LHDN unless requested, you must issue the form to your agents, dealers, or distributors, especially if the total incentives exceed RM5,000 in a calendar year.

Who Needs to Fill in a CP58 Form?

As an employer, you must issue CP58 if your company has paid more than RM5,000 in cash or non-cash incentives to an agent, dealer, or distributor within the year.

These payments might include:

Commissions for sales performance
Cash bonuses for hitting targets
Non-monetary rewards, such as cars, travel packages, or gadgets

If the total incentives are less than RM5,000, CP58 isn’t mandatory unless the agent specifically requests it.

The rule helps businesses avoid unnecessary paperwork while ensuring high-value incentives are properly documented for tax purposes.

When Must I Submit My CP58 Form?

You’re required to issue CP58 to the relevant individuals by 31 March of the following year.

For example, if you paid incentives in 2024, the CP58 form must be provided to the recipients by 31 March 2025.

Failing to meet this deadline can lead to penalties, including:

Fines between RM200 and RM20,000
Possible imprisonment for up to six months

What Incentives are Exempted from the CP58 Form?

Not every benefit or incentive needs to be reported in CP58. According to IRB guidelines, the following items are generally excluded:

Trade discounts and bulk purchase discounts offered as part of regular business transactions
Promotional gifts like pens, umbrellas, or calendars not tied to performance
Reimbursements for business expenses
Management fees or subcontract payments
Open invitation incentives that encourage the general public to refer customers (not tied to a specific agent’s performance)
Credit rebates provided as part of a sales program

The key thing to remember: if the incentive is a performance-based reward, it likely needs to be included.

General business perks or reimbursements, on the other hand, are not included on CP58.

What Rewards Must Be Reported?

When it comes to what should be reported, CP58 covers both cash-based and non-cash incentives tied to performance. This includes:

Commissions: The most common type of reportable income, based on sales performance or referrals.
Bonuses: Any extra cash given for exceeding targets or meeting KPIs.
Non-cash rewards: This could be anything from holiday trips to luxury items like smartphones, cars, or even houses.

For non-cash rewards, you should report the actual cost of the item provided.

Where to Download Form CP58?

You can download the CP58 form directly from the Inland Revenue Board (IRB) Malaysia website.

Check the site regularly to ensure you’re using the latest version of the form, as tax regulations and document formats can change over time.

Download Form CP58 (PDF Format)

Download Form CP58 (Excel Format)

Why Does the IRB Want CP58 to Be Issued?

The purpose of CP58 is in Malaysia’s tax system because it helps the IRB:

Verify income reporting: It ensures both the payer (your business) and the recipient (agent, dealer, or distributor) are accurately reporting their income.
Prevent tax evasion: By tracking commissions and incentives, the IRB can detect discrepancies between what companies claim as expenses and what individuals report as income.
Promote transparency: It creates a clear record of all performance-based payments and reduces the risk of fraud or under-the-table deals.

Issuing CP58 helps maintain the credibility of your company and shows that you’re committed to tax compliance.

How to Fill Out the CP58 Form

Filling out CP58 is straightforward if you’ve kept good records throughout the year. Here’s a quick guide:

Enter the company’s information by including your business name, tax reference number, and contact details.
Fill in recipient details with the recipient’s full name, identification number, and address.
Break down the commissions, bonuses, and non-cash incentives paid during the year.
Attach any relevant documents to support the reported amounts.
Double-check for errors before handing the form to the recipient.

Remember to keep a copy of every CP58 you issue. You’re required to retain these records for at least seven years for potential audits.

Consequences of Not Filing CP58

Skipping CP58 isn’t just a minor mistake. It can lead to serious consequences, including:

Fines ranging from RM200 to RM20,000
Up to six months of imprisonment
The possibility of a full tax audit on your business
Damage to your company’s reputation, which could affect partnerships and trust

FAQs

Where can I get CP58?

You can download CP58 from the official IRB website or consult your tax software provider if they offer automated CP58 forms.

Is form E compulsory in Malaysia?

Yes. Form E is mandatory for all employers. It summarizes the number of employees and total remuneration paid, while CP58 focuses on commissions and incentives for agents and distributors. Here’s a quick comparison:

Form	Purpose	Who It’s For	Submission Requirement
Form E	Summarizes total employees and remuneration paid	All employers (for employees)	Must be submitted to LHDN annually
EA Form	Details of employee income and deductions for tax filing	Employees	Issued to employees, submitted by them during tax filing
CP58	Reports commissions, bonuses, and incentives	Agents, dealers, distributors (non-employees)	Not submitted to LHDN unless requested, but must be issued to recipients

Where to submit form E in Malaysia?

Form E must be submitted through the e-Filing system on the MyTax portal. CP58, however, is not submitted to IRB unless requested.

How to fill in the EA form in Malaysia?

The EA Form summarizes employees' annual income and deductions. While it’s related to employment income, CP58 is for non-employees like agents or dealers.

What happens if I submit CP58 late?

Late submission can result in fines up to RM20,000 or even imprisonment. It’s crucial to meet the 31 March deadline.

Are all Bonuses and incentives included in CP58?

No. Personal gifts, trade discounts, and promotional giveaways usually do not need to be reported. Only performance-related incentives need to be reported.

Review your incentive records today, issue CP58 before the 31 March deadline, and protect your business from unnecessary penalties.

If you’re unsure, consult with a tax professional to stay on the safe side.

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