What’s Form CP58?
It is a form required by LHDN that all Sdn Bhd needs to provide and circulate to its agents, dealers and distributors on monetary or non-monetary payments made to them by 31 March every year [section 83 Income Tax Act 1967]
Failure to comply will result in a penalty of RM200 to RM20,000 or imprisonment for a term not exceeding 6 months, or both. [section 120(1)(b) Income Tax Act 1967].
What’s inside a Form CP58?
- Recipient information
- Monetary incentive such as allowance, commission, bonus, etc.
- Non-monetary incentive such as tour package, tickets, motor vehicles, house, voucher.
Important highlights
- Only amount more than RM5,000 need to circulate
- Remember to keep track proof of circulation via registered postage or email
- Do not need to provide to LHDN but need to keep original copy for 7 years
- Amount RM5,000 and below only requires payee information
- Payment exempted from CP58 are
- Subcontract payment
- Free gifts
- Rebates
- Discounts
Why it’s more complicated than you think?
- Subject to tax audit and additional penalties
- Manual administration is complicated
- Requires efficient filing and record keeping on source documents
- Any errors require re-submission and penalties
What’s easier, better, and faster way to administer your CP58 filing. The smarter choice is to outsource to MYKONGSI. Why?
- Save your administration time from something outside your team expertise
- Avoid confusion reading on how-to-do from the internet, you can risk wasting time and still getting it wrong!
- Get advice from expert (HR + Qualified Accountants’ team combined) It’s not the cost you can see, it’s the value you can’t.
Contact Us Now!
Disclaimer clause:
The information represented by myKONGSI on www.mykongsi.com and all mobile and social network applications are simplified versions and for general purposes only. This information is not meant or to be relied upon for any use and/or application. We make no representation or warranty of any kind, expressly or by implication and we shall not be held responsible for its accuracy, adequacy, validity, reliability, or completeness. Feel free to contact us at info@mykongsi.com for greater clarification.