What is CP58?
CP58 is a tax form issued by Lembaga Hasil Dalam Negeri (LHDN), Malaysia’s Inland Revenue Board. It is used by businesses to declare commission payments made to agents, dealers, or distributors.

Who Needs to Issue CP58?
Any company that pays commissions exceeding RM5,000 annually to an agent, dealer, or distributor is required to issue a CP58 form. Even if the amount is below RM5,000, businesses may choose to issue it voluntarily.

Why is CP58 Important?

1. Tax Compliance – Ensures LHDN can track commission income.
2. Income Declaration – Helps recipients report income in their tax returns.

What Information Does CP58 Contain?

• Payer details – Company name, tax reference, and address.
• Recipient details – Name, NRIC/Company No., and address.
• Commission details – Amount paid, including incentives, bonuses, or rewards.

When Should CP58 Be Issued?
Companies must issue CP58 by 31st March of the following year for commissions paid in the previous year.

Are Recipients Required to Pay Tax on CP58?
Yes, recipients must report the commission income in their personal or business tax filings.

Consequences of Not Issuing CP58
While there is no direct penalty for failing to issue CP58, businesses may face compliance risks under the Income Tax Act 1967, including:

• Failure to Report Commission Payments – May result in additional taxes, penalties, or an audit.
• Failure to Maintain Proper Records – Businesses must retain records for 7 years under Section 82A. Incomplete records may lead to fines.
• Recipient’s Non-Declaration of Income – Agents, dealers, or distributors who fail to declare CP58 income may face penalties for under-reporting.

By ensuring proper issuance of CP58, businesses can remain compliant with tax regulations and avoid unnecessary risks. For any further assistance, feel free to contact us!

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