Published On: 11/03/2026By

Every year during Malaysia’s tax reporting season, employers must submit several important payroll documents to the Inland Revenue Board of Malaysia (LHDN).

One of the most commonly misunderstood reports is CP8D (Borang CP8D).

Many companies only start preparing CP8D close to the submission deadline, which often leads to last-minute payroll checks, incomplete employee data, and unnecessary stress for HR and finance teams.

In reality, CP8D is a critical annual payroll report that employers must submit together with Form E to declare each employee’s remuneration for the previous year.

This guide explains:

  • What CP8D is

  • What information must be reported

  • What Benefits-in-Kind (BIK) means in CP8D

  • The submission deadline employers must follow

  • How payroll systems help ensure accurate reporting

What Is CP8D?

CP8D (Borang CP8D) is a detailed employee remuneration report submitted annually by employers in Malaysia.

It acts as a supporting attachment to Form E, providing LHDN with a breakdown of each employee’s income and statutory deductions for the previous year of assessment.

The information reported in CP8D helps LHDN:

  • Verify employee income declarations

  • Cross-check employer payroll records

  • Ensure accurate tax reporting under Malaysia’s Self-Assessment System

For employers, preparing CP8D accurately is essential to ensure payroll compliance and smooth tax reporting.

What Information Must Be Declared in CP8D?

CP8D requires employers to report detailed remuneration information for every employee.

The report typically includes:

✔ Total annual salary
✔ Allowances and bonuses
✔ Benefits-in-Kind (BIK)
✔ Monthly Tax Deduction (PCB)
✔ CP38 deductions
✔ EPF / KWSP contributions

Because CP8D contains detailed payroll data, it must be prepared carefully to ensure the figures match payroll records and Form EA issued to employees.

Any inconsistencies may trigger tax clarification requests or audits.

What Are Benefits-in-Kind (BIK) in CP8D?

One area that often causes confusion for employers is Benefits-in-Kind (BIK).

Benefits-in-Kind are non-cash benefits provided by an employer to an employee.

These benefits:

  • Are provided in the form of goods, services, or facilities

  • Cannot be converted into cash

  • Usually remain owned or controlled by the employer

Even though these benefits are not paid as salary, they may still be taxable and must be reported in CP8D.

Common Examples of Benefits-in-Kind (BIK)

Some common BIK provided by employers in Malaysia include:

  • Company cars provided for employee use

  • Employer-provided accommodation

  • Furniture or household equipment in company housing

  • Utility bills such as electricity and water

  • Mobile phone or telephone expenses paid by the employer

  • Club membership fees

  • Drivers or gardeners provided by the employer

These benefits form part of an employee’s overall remuneration package and therefore must be included in CP8D reporting when applicable.

For HR and payroll teams, identifying and valuing BIK correctly is important to ensure accurate employee income reporting.

CP8D Submission Deadline

Employers must submit CP8D together with Form E every year.

The usual submission deadline is:

📅 31 March

Missing the deadline may lead to penalties under the Income Tax Act 1967.

Possible consequences include:

❌ Late submission penalties
❌ Fines ranging from RM200 to RM20,000
❌ Increased risk of tax review or audit

Because of this, employers are encouraged to prepare payroll data and CP8D reports well before the deadline.

Common CP8D Preparation Challenges for Employers

In practice, many companies face challenges when preparing CP8D, especially if payroll data is managed manually.

Some common issues include:

  • Incomplete employee remuneration records

  • Missing information on Benefits-in-Kind

  • Payroll data that does not match Form EA

  • Last-minute preparation close to the deadline

These situations often create unnecessary pressure for HR and finance teams during the tax reporting period.

A structured payroll system can help ensure that all remuneration data is properly recorded throughout the year, making CP8D preparation much easier.

How Payroll Systems Help Simplify CP8D Preparation

Using an integrated HR and payroll system can significantly reduce the complexity of preparing CP8D.

A structured system helps employers:

✔ Maintain organised payroll records throughout the year
✔ Track employee benefits and allowances accurately
✔ Generate payroll reports required for tax reporting
✔ Ensure consistency between payroll records, Form EA, and CP8D

With Pandahrms, employers can manage payroll, employee data, leave, and claims within a single HR platform.

This allows HR teams to generate payroll reports more efficiently and maintain accurate employee remuneration records, supporting compliance with Malaysian tax regulations.

Frequently Asked Questions About CP8D in Malaysia

What Is CP8D in Malaysia?

CP8D is an annual payroll report submitted by employers to the Inland Revenue Board of Malaysia (LHDN).

It is submitted together with Form E and contains detailed information about each employee’s remuneration for the previous year, including salary, allowances, Benefits-in-Kind (BIK), and statutory deductions.

Is CP8D Mandatory for Employers?

Yes. Employers who pay remuneration to employees in Malaysia are required to submit CP8D together with Form E.

Failure to submit the report may result in penalties under the Income Tax Act 1967.

What Is the CP8D Submission Deadline?

The CP8D report must normally be submitted together with Form E by 31 March each year.

Employers are encouraged to prepare payroll records early to avoid last-minute errors or late submission penalties.

Does CP8D Include Benefits-in-Kind (BIK)?

Yes. Benefits-in-Kind (BIK) must be included in CP8D when applicable.

Examples of BIK include:

  • Company cars

  • Employer-provided accommodation

  • Utilities paid by the employer

  • Club memberships

  • Employer-provided services such as drivers or gardeners

These benefits form part of the employee’s taxable remuneration.

Conclusion

CP8D is an important annual payroll report that Malaysian employers must submit together with Form E to LHDN.

The report provides a detailed breakdown of employee remuneration, including salary, allowances, statutory deductions, and Benefits-in-Kind.

Preparing CP8D early and maintaining accurate payroll records can help employers:

  • Avoid late submission penalties

  • Reduce payroll reporting errors

  • Ensure smooth tax compliance for both employers and employees

By implementing a structured HR and payroll system such as Pandahrms, businesses can manage payroll data more efficiently and simplify their annual tax reporting process.