Published On: 27/02/2026By

Form CP58: Employer Compliance Guide, Requirements & Download (2026 Update)

When your company rewards agents, dealers, or distributors with commissions, incentives, or non-cash rewards, tax compliance does not stop at payment.

If the total incentive exceeds RM5,000 per year, you are required to issue CP58.

Many employers overlook this requirement — until LHDN audits their commission expenses.

This guide explains:

  • What CP58 is

  • Who must issue it

  • Reporting requirements

  • Deadline & penalties

  • Exemptions

  • Where to download CP58

  • Employer best practices

What Is CP58?

CP58 is a tax reporting form that Malaysian businesses must issue to agents, dealers, or distributors (non-employees) who receive commissions, bonuses, or performance-based incentives.

It is required under Section 83A(1) of the Income Tax Act 1967.

Think of CP58 as:

  • The EA Form equivalent — but for non-employees.

  • A compliance document that supports income transparency between payers and recipients.

⚠️ Important:
CP58 is not submitted automatically to LHDN, but it must be issued to recipients and kept for record purposes.

Who Must Issue CP58?

You must issue CP58 if:

✔ Your company paid more than RM5,000 in total incentives
✔ The payments were made to agents, dealers, or distributors
✔ The payments were made within a calendar year
✔ The rewards are performance-based

Examples of Reportable Payments:

  • Sales commissions

  • Target achievement bonuses

  • Referral incentives

  • Non-cash rewards (cars, travel packages, gadgets, properties)

If total incentives are below RM5,000, issuing CP58 is not mandatory — unless requested by the recipient.

CP58 Deadline in Malaysia

CP58 must be issued on or before 31 March of the following year.

Example:

  • Incentives paid in 2025

  • CP58 must be issued by 31 March 2026

Failure to comply may result in:

  • Fine: RM200 to RM20,000

  • Imprisonment: Up to 6 months

  • Increased audit risk

Compliance is not optional — it is a statutory obligation.

What Must Be Reported in CP58?

CP58 covers performance-based incentives only.

1. Cash-Based Incentives

  • Sales commissions

  • Performance bonuses

  • KPI achievement rewards

2. Non-Cash Incentives

  • Cars

  • Travel packages

  • Smartphones

  • Luxury items

  • Property

For non-cash rewards, employers must report the actual cost incurred.

What Is NOT Included in CP58?

Not all payments require reporting.

Generally excluded items include:

  • Trade discounts

  • Bulk purchase discounts

  • Promotional gifts (e.g., calendars, pens)

  • Business expense reimbursements

  • Management fees

  • Subcontractor payments

  • Credit rebates

  • Open public referral campaigns not tied to individual performance

Key rule:
If it is performance-based → likely reportable.
If it is a general business benefit → usually excluded.

Why Does LHDN Require CP58?

The purpose of CP58 is to support transparency within Malaysia’s tax ecosystem.

It allows the Lembaga Hasil Dalam Negeri (LHDN) to:

✔ Verify commission income reporting
✔ Match company expense claims with recipient income declarations
✔ Reduce tax evasion risks
✔ Strengthen audit trails

If your company claims commissions as business expenses, LHDN expects corresponding income disclosure by recipients.

Where to Download CP58 Form (PDF & Excel)

Employers can download the CP58 form directly from the Inland Revenue Board (IRB) Malaysia website.

Check the site regularly to ensure you’re using the latest version of the form, as tax regulations and document formats can change over time.

Download Form CP58 (PDF Format)

Download Form CP58 (Excel Format)

How to Fill in CP58 (Step-by-Step for Employers)

Preparing CP58 becomes simple when proper records are maintained.

Step 1: Company Details

  • Business name

  • Tax reference number

  • Contact details

Step 2: Recipient Details

  • Full name

  • Identification number

  • Address

Step 3: Incentive Breakdown

  • Commission amounts

  • Bonus amounts

  • Value of non-cash rewards

Step 4: Verify Accuracy

  • Cross-check totals

  • Ensure consistency with accounting records

Step 5: Retain Records

Keep copies for at least seven (7) years for audit purposes.

Penalties for Failing to Issue CP58

Non-compliance may result in:

  • RM200 – RM20,000 fine

  • Up to 6 months imprisonment

  • Possible tax audit

  • Reputational damage

For businesses with large distributor networks, failure to issue CP58 may also complicate expense deductibility during tax review.

EA Form vs CP58

Employer Best Practices for CP58 Compliance

To reduce compliance risks:

✔ Track all commission payments systematically
✔ Separate employee vs non-employee incentives clearly
✔ Monitor cumulative RM5,000 threshold
✔ Prepare documentation before 31 March deadline
✔ Align accounting and tax reporting

Frequently Asked Questions (FAQ)

Is CP58 compulsory in Malaysia?

Yes — if total incentives exceed RM5,000 annually per agent/dealer/distributor.

Do I submit CP58 to LHDN?

No. It is issued to recipients and kept for records unless requested by LHDN.

What happens if CP58 is issued late?

Penalties may include fines up to RM20,000 and possible imprisonment.

Are all incentives reportable?

Only performance-based incentives. General promotional or business reimbursements are excluded.

Final Compliance Reminder for Employers

If your business pays commissions, bonuses, or non-cash rewards to agents or distributors:

  • Review 2025 payment records
  • Check who exceeded RM5,000
  • Prepare CP58 before 31 March
  • Retain records for seven years

CP58 is more than paperwork — it protects your company from penalties, audit exposure, and tax disputes.