Form CP58 – Addendum to IRB Guidelines

Borang CP58

Further to my post on ‘Form CP 58 – Duty to Furnish Particulars of Payment Made to an Agent, Dealer or Distributor, etc.’ the Inland Revenue Board has issued an addendum to their guidelines on the above matter.

In this addendum, issued on 15 August 2013, the IRB has clarified that the following additional items are not considered monetary or non-monetary incentive payments to a company’s agents, dealers or distributors:

  • Appreciation Night hosted by the company in Malaysia to appreciate the contribution of agents, dealers or distributors who have achieved their targets. These events may include events such as Gala Dinner, entertainment, accommodations which are provided to invited agents, dealers or distributors.
  • Dinner or entertainment events provided by the company in Malaysia in conjunction with the celebration of Hari Raya Aidilfitri, Chinese New Year, Deepavali, Christmas, company anniversaries and other such festivals.
  • Conventions organized specifically for agents such as leadership training sessions, management sessions and other activities for the purpose of increasing sales which are not part of a program or travel package in Malaysia which has been considered as a non-cash incentive, provided that such events are held in Malaysia.

As such, a Form CP58 need not be issued for such incentives mentioned above.

To view the IRB’s addendum (in Malay language only) please visit the following link:

“Addendum kepada garis panduan berkaitan tanggungjawab mengemukakan butiran bayaran kepada ejen, pengedar atau pengagih dalam Borang CP 58 bagi maksud peruntukan di bawah seksyen 83A Akta Cukai Pendapatan 1967( ACP 1967)”:

CP58 Addendum

About Richard

Richard Oon Hock Chye has more than 25 years of experience in taxation and business advice, with particular expertise in Malaysian property law. He began his taxation career with Deloitte Touche Tohmatsu, a ‛Big Four’ accounting firm, before starting his own practice, ConsulNet Tax Services Sdn. Bhd., in 1996. He is currently the National Tax Director of TY Teoh International, one of the leading consulting service providers in Malaysia. It is a member of the MSI Global Alliance, a global network of more than 250 independent legal and accounting firms, in over 100 countries. Richard sits on the board of two companies listed on the Main Board of Bursa Malaysia, as an independent non-executive director. He is also a regular contributor to several magazines and publications, and has shared his tax expertise on numerous occasions with organisations and property developers. As well as being a member of the Malaysian Institute of Accountants (MIA), Richard is a fellow member of both the Association of Chartered Certified Accountants (ACCA) and the Chartered Tax Institute of Malaysia (CTIM). He is a Certified Financial Planner (CFP) and holds a tax agent licence issued by the Ministry of Finance. Richard is also the author of the book, ‘Every Property Investor’s Guide To How To Pay Less Tax Legally’.

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