CP58 Form — Commission / Incentive Payment Statement (Malaysia)
Section 83A Income Tax Act 1967 — Statement of Commission to Agents, Dealers and Distributors
BORANG / FORM CP58
Penyata Komisyen / Insentif kepada Ejen, Pengedar atau Pengedaran / Statement of Commission / Incentive to Agents, Dealers or Distributors
Seksyen 83A Akta Cukai Pendapatan 1967 / Section 83A Income Tax Act 1967
Year of Assessment: [Year of Assessment]
BAHAGIAN A — BUTIRAN SYARIKAT / PART A — COMPANY (PAYER) DETAILS
Company Name: [Payer Name]
SSM Registration No.: [Payer SSM]
Income Tax Reference (C No.): [Payer Tax Ref]
Registered Address: [Payer Address]
BAHAGIAN B — BUTIRAN PENERIMA / PART B — RECIPIENT DETAILS
Recipient Full Name: [Recipient Name]
NRIC / Passport No.: [Recipient NRIC]
Income Tax Reference: [Recipient Tax Ref]
Address (as at 31 December [Year of Assessment]): [Recipient Address]
Type of Agent / Distributor: [Agent Type]
BAHAGIAN C — BUTIRAN PEMBAYARAN / PART C — PAYMENT DETAILS (Year of Assessment [Year of Assessment])
Total Cash Commissions: [Cash Commissions]
Total Incentive Bonuses: [Incentive Bonuses]
Value of Non-Monetary Benefits: [Non-Monetary Value]
TOTAL PAYMENTS: [Total Payments]
Section 107D Withholding Tax Deducted: [Withholding Tax]
PERISYTIHARAN / DECLARATION
I, the authorised officer of [Payer Name], hereby declare that all commissions, incentive bonuses, and non-monetary benefits paid to [Recipient Name] during the year of assessment [Year of Assessment] are accurately and completely reflected in this statement, as required by Section 83A of the Income Tax Act 1967.
This CP58 is furnished to the recipient by 31 March of the following year and a copy is submitted to the Inland Revenue Board of Malaysia (LHDN), as required by Section 83A.
Authorised Officer (Company)
________________
Signature
What Is a CP58 Form — Commission / Incentive Payment Statement (Malaysia)?
A CP58 Form — Commission / Incentive Payment Statement in Malaysia records the wages, deductions, and contributions reportable for an employee.
Section 83A of the ITA 1967, introduced by the Finance Act 2011 with effect from year of assessment 2012, imposes a mandatory obligation on companies to prepare and furnish a CP58 statement to every agent, dealer, or distributor to whom the company paid commissions, fees, incentives, or any other monetary or non-monetary benefit during the calendar year. The payer must furnish the CP58 to the recipient by 31 March of the following year and submit a copy to LHDN.
The CP58 applies specifically to non-employee recipients — persons who are not in a contract of service with the payer but who receive commission or incentive income for introducing business, selling products, or distributing goods and services. Insurance agents registered with Bank Negara Malaysia (BNM), unit trust agents registered with the Securities Commission Malaysia (SC), direct sales distributors registered under the Direct Sales and Anti-Pyramid Scheme Act 1993, and real estate negotiators registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA) are among the principal categories of CP58 recipients.
The CP58 must not be confused with Form EA, which is the annual employment income statement issued to employees under Section 83(1A) of the ITA 1967. Form EA covers employment income under Section 13 of the ITA 1967, while CP58 covers commission income under Section 4(b) of the ITA 1967 (business income for self-employed agents).
The legal framework governing the CP58 Form — Commission / Incentive Payment Statement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a CP58 Form — Commission / Incentive Payment Statement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Act 1955 (Act 265) sets the foundational requirements.
When Do You Need a CP58 Form — Commission / Incentive Payment Statement (Malaysia)?
A CP58 statement is required in Malaysia whenever a company makes commission, incentive, or non-monetary benefit payments to an agent, dealer, or distributor who is not an employee of that company, under Section 83A of the Income Tax Act 1967.
A CP58 is needed when an insurance company pays commissions to life or general insurance agents registered with Bank Negara Malaysia (BNM). Insurance agents are self-employed for tax purposes in Malaysia, and the insurance company must issue CP58 to each agent by 31 March of the following year.
A CP58 is required when a unit trust management company pays commissions or trail fees to unit trust agents or financial advisers registered with the Securities Commission Malaysia (SC). The SC's licensing framework for Capital Markets Services Licence holders does not alter the CP58 obligation under Section 83A of the ITA 1967.
A CP58 is needed when a direct sales company registered under the Direct Sales and Anti-Pyramid Scheme Act 1993 pays incentive bonuses, leadership bonuses, or product commissions to its members or distributors. Multi-level marketing (MLM) companies with more than a specified number of distributors are specifically targeted by LHDN's enforcement of the CP58 obligation.
A CP58 is required when a property developer pays referral fees or finder's fees to real estate negotiators (REN) registered with BOVAEA for introducing purchasers of property under the Housing Development (Control and Licensing) Act 1966 (HDA 1966).
A CP58 is needed when an e-commerce platform operator pays commissions to marketplace sellers or affiliate partners who are not employees but earn commission on sales generated through the platform, where the platform is a company registered with the Companies Commission of Malaysia (SSM).
Parties in Malaysia should prepare a CP58 Form — Commission / Incentive Payment Statement (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your CP58 Form — Commission / Incentive Payment Statement (Malaysia)
A complete and valid CP58 statement for Malaysia must include the following elements as prescribed by LHDN under Section 83A of the Income Tax Act 1967.
Payer details: Full company name, Companies Commission of Malaysia (SSM) registration number, income tax reference number (C number for companies), and business address. The CP58 must be signed by an authorised officer of the company.
Recipient identification: Full legal name of the agent, dealer, or distributor as per their MyKad or passport, their NRIC or passport number, income tax reference number, and their address as at 31 December of the year of assessment. For non-citizen recipients, the passport number, nationality, and Work Permit reference (if applicable) must be stated.
Year of assessment: The calendar year for which the CP58 is issued, being the year in which the commissions or payments were made. LHDN requires CP58 forms to be furnished to recipients by 31 March of the year following the year of assessment, and copies submitted to LHDN by the same deadline.
Commission and incentive amounts: A breakdown of payments made during the year, separated into cash commissions (in RM), incentive bonuses (in RM), and the value of non-monetary benefits — such as travel incentives, gifts, vouchers, or luxury goods — assessed at their market value in RM as required by LHDN's guidelines on non-monetary benefits under the ITA 1967.
Deductions made: Any withholding tax deducted at source under Section 107D of the Income Tax Act 1967, which applies where an agent, dealer, or distributor does not furnish their income tax reference number to the payer. The Section 107D withholding rate is 2% on gross commissions, and failure by the payer to withhold and remit this amount makes the payer liable under Section 107D(3) of the ITA 1967.
Declaration of completeness: A declaration by the company that all commissions, incentives, and non-monetary benefits paid to the recipient during the year are accurately reflected in the statement, as required for LHDN audit purposes under the LHDN Audit Framework 2022.
Additional compliance elements for a CP58 Form — Commission / Incentive Payment Statement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). CP58 Form — Commission / Incentive Payment Statement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/forms/cp58-form-malaysia
"CP58 Form — Commission / Incentive Payment Statement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/forms/cp58-form-malaysia.
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author = {{Forms Legal}},
title = {CP58 Form — Commission / Incentive Payment Statement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/forms/cp58-form-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}Frequently Asked Questions
Under Section 83A of the Income Tax Act 1967, a company must furnish the CP58 statement to each agent, dealer, or distributor by 31 March of the year following the year of assessment. For example, CP58 for commissions paid during the 2024 calendar year (year of assessment 2024) must be given to the recipient by 31 March 2025. A copy of each CP58 must also be submitted to LHDN by the same date. Failure to furnish CP58 to the recipient or submit to LHDN by 31 March is an offence under Section 120 of the Income Tax Act 1967, attracting a fine of RM 200 to RM 20,000, imprisonment not exceeding 6 months, or both. Companies submitting CP58 through the LHDN e-Filing portal can use the bulk upload facility for large numbers of recipients. Under Malaysia law, Employment Act 1955 (Act 265), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Form EA and Form CP58 are both annual income statements required under the Income Tax Act 1967, but they cover different categories of income recipient. Form EA, required under Section 83(1A) of the ITA 1967, is issued to employees under a contract of service — persons whose income is categorised as employment income under Section 13 of the ITA 1967. Form CP58, required under Section 83A, is issued to agents, dealers, and distributors who are not employees — persons whose commission income is categorised as business income under Section 4(b) of the ITA 1967. An insurance company, for example, issues Form EA to its employed staff (underwriters, customer service representatives) but issues Form CP58 to its self-employed insurance agents. The tax treatment and allowable deductions differ significantly between employment income and business income under the ITA 1967.
Under Section 107D of the Income Tax Act 1967, a company paying commissions, fees, or incentives to an agent, dealer, or distributor must withhold 2% of the gross payment as withholding tax if the recipient does not provide their income tax reference number. This withholding applies to payments to Malaysian residents. The withheld amount must be remitted to LHDN by the 15th of the following month. If the agent furnishes a valid income tax reference number, no Section 107D withholding applies — but the CP58 reporting obligation under Section 83A still stands. Companies that fail to withhold under Section 107D become personally liable for the unwithheld tax under Section 107D(3) of the ITA 1967, in addition to a 10% penalty on the outstanding amount. Under Malaysia law, Employment Act 1955 (Act 265), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Yes, non-monetary benefits provided to agents, dealers, or distributors — including overseas incentive travel, luxury goods, vouchers, vehicle gifts, and any other benefit with economic value — must be reported in the CP58 statement at their market value in Malaysian Ringgit (RM). Section 83A of the Income Tax Act 1967 covers all monetary and non-monetary payments. LHDN's guidelines specify that the market value of a non-monetary benefit is the price it would cost the recipient to acquire the same benefit in an arm's length transaction. Companies that omit non-monetary benefits from CP58 risk penalty under the LHDN Audit Framework 2022, and the recipient may be assessed for unreported income under Section 91 of the ITA 1967. Under Malaysia law, Employment Act 1955 (Act 265), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Yes, any person who receives a CP58 from a company has received income that is subject to income tax under Section 4(b) of the Income Tax Act 1967 (business income) and must file an income tax return if their total income exceeds the minimum threshold. For Malaysian residents, the filing threshold for year of assessment 2024 is RM 34,000 (after EPF deduction) or RM 25,500 (chargeable income). Agents, dealers, and distributors file Form B (for individuals with business income). The CP58 amount is declared in the business income section of Form B. Sole proprietors may claim allowable business deductions against their commission income, such as travelling expenses, promotional costs, and office supplies incurred wholly and exclusively in earning that income, under Section 33 of the ITA 1967. Under Malaysia law, Employment Act 1955 (Act 265), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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