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)”: