What should company do when pay out commission to agent, dealer or distributor?
Company need to prepare and provide a copy of statement of monetary and non-monetary incentive payment to each agent, dealer or distributor (Form CP58).
What is CP58?
CP58 is a statement of monetary and non-monetary incentive payment to an agent, dealer or distributor pursuant to Section 83A of the Income Tax Act 1967.
Who should company prepare for?
Agent, dealer or distributor that company pay more than RM5,000 during the calendar year either monetary or non-monetary forms. Company also need to provide if requested by agent, dealer or distributor that received not more than RM5,000.
What should be declare in CP58?
- Monetary payment
- Commission/ Bonus
- Other monetary payment based on performance achieved in the sale of products or services by the agent, dealer or distributor (example incentives, subsidies, discounts, cash vouchers, cash instalments of incentive received in the form of goods such as vehicle, house, furniture and computer; as well as in payment form such as rent, rebates, paid utility bills and other similar receipts)
- Non-monetary payment
- Vehicle
- House
- Tour/ Travel packages
- Other non-monetary payment received on the basis of performance achieved by the agent, dealer or distributor in the sale of products or services.
Due date to provide Form CP58?
On or before 31 March of the following year.
Others than preparation of Form CP58?
A 2% tax deduction is imposed in the current year on the agent, dealer or distributor that receive payments from payer companies that are equal to or exceed the threshold value in the previous year. Details please refer to :
Where to download the form – https://www.hasil.gov.my/en/forms/download-forms/download-form-other-forms