Understanding Form CP58: Reporting Incentives to Agents and Distributors

What is Form CP58?

Form CP58 is a prescribed form issued by the Inland Revenue Board of Malaysia (LHDN) that must be prepared by companies to disclose the monetary and non-monetary incentives given to their agents, dealers, or distributors.

Who Must Issue CP58?

Any company or business entity that provides incentives exceeding RM5,000 in a calendar year to:

• Agents

• Dealers

• Distributors

These incentives must not be considered employment income (i.e., recipients are not employees).

Types of Incentives Reported in CP58

• Monetary incentives: Bonuses, commissions, cash rewards

• Non-monetary incentives: Holiday trips, cars, gifts, vouchers, etc.

⚠️ Note: Reimbursements of business expenses are not considered benefits and are excluded from CP58.

Deadline for Issuing CP58

• Must be prepared and issued to recipients by 31 March of the following year (e.g., for 2024 incentives, issue by 31 March 2025).

Submission to LHDN

• Currently, Form CP58 is not required to be submitted to LHDN unless specifically requested.

• However, the company must retain a copy for audit purposes.

The following is a CP58 form with labelling on what should be filled for each field:

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