The CP58 is the annual statement your principal company issues to report the commissions, bonuses, and non-cash incentives it paid you during the year, and for income tax purposes it’s the document that tells you exactly what to declare. Under Section 83A of the Income Tax Act 1967, any Malaysian company paying an agent, dealer, or distributor more than RM5,000 in a calendar year must prepare one and hand it to you.1Inland Revenue Board of Malaysia. Notification – New Version of Form CP58 Your job is to take the figures on that form and report them correctly on your annual return.
When You Should Receive Your CP58
The paying company has until March 31 of the following year to deliver the form. Incentives paid during 2025 should reach you by March 31, 2026. Delivery can come by post, email, or through the company’s own portal.
The RM5,000 threshold is the combined value of everything the company gave you during the year, not just the cash. Sponsored trips, luxury goods, and physical prizes all count toward the total. If your incentives came in below RM5,000, the company isn’t required to issue one, but you can request it.
What’s on the Form
The CP58 identifies both sides of the transaction. The company lists its registered name and tax reference number. Your section shows your full name as it appears on your NRIC (or passport, if you’re a foreign agent) and your personal tax reference number, which ties the income directly to your taxpayer profile at LHDN.2Inland Revenue Board of Malaysia. CP58 – Statement of Monetary and Non-Monetary Incentive Payment to an Agent, Dealer or Distributor
Your remuneration is itemised by type: cash commissions, performance bonuses, and non-cash incentives listed separately. Non-cash items carry a ringgit value based on the actual cost the company incurred.3Chartered Tax Institute of Malaysia. e-CTIM 51 of 2012 – Clarification on Section 83A An overseas trip worth RM8,000 appears on the form at that value, sitting alongside your cash commissions so the full economic benefit is captured.
How To Report CP58 Income on Your Tax Return
Commission income from agency, dealer, or distributor work is business income under the Income Tax Act. That means you file Form B, not Form BE. Form BE is reserved for individuals whose income comes entirely from non-business sources, such as employment salary alone.4Inland Revenue Board of Malaysia. Frequently Asked Questions – Form B
This is where people trip up. The moment you earn commission as an agent, you’re a Form B filer, even if most of your money comes from a salaried job. The CP58 figures generally go in as statutory income from a business. Getting the classification right matters because it determines which deductions you can claim and which rate applies to the net.
LHDN can cross-check what the company reported paying you against what you declared. A gap between the two is one of the fastest ways to trigger an inquiry, so reconcile the numbers before you submit and keep the form next to your filed return.
Keeping the Form
You don’t submit the physical CP58 to LHDN with your return. You do have to keep it for at least seven years from the end of the year the income relates to.5Inland Revenue Board of Malaysia. Public Ruling 5/2000 – Keeping Sufficient Records (Individuals and Partnerships) If you’re audited, the form is your evidence of the source and amount of the income. A clear digital copy stored securely counts, provided it’s complete and legible.
Penalties for Misreporting
Leaving CP58 income off your return, or understating it, exposes you to Section 113(1) of the Income Tax Act. The fine ranges from RM1,000 to RM10,000, and on top of that there’s a special penalty of 200% of the tax that was undercharged.6Inland Revenue Board of Malaysia. Offences Even without prosecution, the Director General can require you to pay a penalty equal to the undercharged tax.
The arithmetic gets punishing quickly. If you left RM50,000 off your return and the tax on that came to RM10,000, you could face RM10,000 in back tax plus RM20,000 in penalties, on top of any fine.
What Changes in 2026 With E-Invoicing
From January 1, 2026, mandatory e-invoicing extends to all taxpayers with annual turnover up to RM5 million, completing the nationwide rollout.7Inland Revenue Board of Malaysia. Implementation of e-Invoice in Malaysia – Frequently Asked Questions Under LHDN’s e-Invoice Specific Guideline, when a seller pays commissions or incentives to an agent, dealer, or distributor, the seller must issue a self-billed e-invoice for that payment, referencing the same Section 83A obligations behind CP58.8Inland Revenue Board of Malaysia. e-Invoice Specific Guideline
LHDN has not indicated that e-invoicing replaces the CP58. The two run in parallel: the self-billed e-invoice records each transaction in real time through MyInvois, while the CP58 stays as the annual summary. For you as an agent or distributor, the practical effect is that your commission income is now tracked at the transaction level as well as in the year-end summary, so any discrepancy on your return is even easier for LHDN to spot.