LTT KiraKira
CP58 Generator
Agent incentive statements, done in minutes.
v1
03-Aug-26
LTTcfo_KiraKiraCP58-v1-260803.html
LTT Outsourced CFO Sdn. Bhd.
The rule behind this form
If your company pays commission, bonuses, incentives or non-cash rewards to agents, dealers or distributors, section 83A of the Income Tax Act 1967 makes you prepare a CP58 for each of them and hand it over by 31 March of the following year. It is not a tax return, and no copy goes to LHDN — but failing to prepare it is an offence.
Rules as at September 2026 · Income Tax Act 1967 s.83A, form CP58 [Pin. 1/2022]
CP58 is the Statement of Monetary and Non-Monetary Incentive Payment to an Agent, Dealer or Distributor. It has been in force since 1 January 2012. The company paying the incentives — LHDN calls it the payer company — prepares one statement per recipient, showing what that person or business received during the calendar year.
It exists so that the recipient can report the income correctly and LHDN can match what was paid against what was declared. The recipient is not your employee: an employee gets a Form EA instead, never a CP58.
Section 83A(4) defines an agent, dealer or distributor as any person authorised by a company to act in that capacity who receives payment — in money or otherwise — arising from sales, transactions or schemes they carry out in that capacity. In practice that catches:
The RM5,000 threshold. A CP58 is required only where the total incentives, allowances and bonuses received by that agent, dealer or distributor exceed RM5,000 in the calendar year. Monetary and non-monetary amounts are added together to test it. Below the threshold you still have to keep the records, and you must still provide a statement if the recipient asks for one.
| Include | Leave out |
|---|---|
| Commission, incentive, bonus and allowance paid in cash | Trade, volume and cash discounts given in the ordinary course of business |
| Non-monetary rewards — a car, a motorcycle, a holiday trip, tickets, gifts, vouchers — at their value | Rebates and credit notes that reduce the purchase price of goods |
| Incentive trips and conventions paid for by the company | Anything already reported as employment income on a Form EA |
| Payments made through a third party on the company's behalf | A reimbursement of an expense the agent actually incurred for you |
The statement must reach the agent, dealer or distributor not later than 31 March of the year following the calendar year the payments relate to. So incentives paid during 2026 are reported on a CP58 given out by 31 March 2027.
You do not lodge CP58 with LHDN. You give it to the recipient and keep your copy — LHDN can ask for the set during an audit, and in practice does when it is reviewing an agent's return.
Failing to prepare CP58 is an offence under section 120(1)(b) of the Income Tax Act 1967. On conviction the fine is not less than RM200 and not more than RM20,000, or imprisonment for a term not exceeding six months, or both.
A company appoints Siti as a distributor. During 2026 it pays her RM38,400 in commission, a RM2,000 year-end incentive, and sends her on an incentive trip that cost the company RM4,300.
| Item | Form | Amount |
|---|---|---|
| Commission | Monetary | RM38,400.00 |
| Year-end incentive | Monetary | RM2,000.00 |
| Incentive trip | Non-monetary | RM4,300.00 |
| Total for the year | RM44,700.00 |
RM44,700 is well over RM5,000, so a CP58 is required. The trip goes on the statement at its cost to the company, in the non-monetary column — leaving it out because no cash changed hands is the single most common mistake with this form.
Key the payer company once and it is remembered for every recipient. Add each agent with their monetary and non-monetary lines, and the tool totals the year, applies the RM5,000 test and tells you whether a statement is actually required. Each CP58 prints to A4 in the layout LHDN asks for, one page per recipient. Everything runs in your own browser — no agent names, identity numbers or figures are uploaded anywhere.
No. CP58 is given to the agent, dealer or distributor, not lodged with LHDN. Keep your copy — LHDN can request the full set during an audit of your company or of the recipient.
No statement is required. You must still keep the records, and if the recipient asks you for a statement you have to provide one.
Form EA, for the employment income. CP58 covers payments made in an agent, dealer or distributor capacity, not employment. If the same person genuinely receives both, each stream goes on its own form.
At the cost to the company of providing it — the price of the trip, the vehicle or the goods. That is the figure that belongs in the non-monetary column.
Section 83A applies to companies. A business that is not a company is outside the section, though the payments remain deductible expenses that must be supported by records, and the recipient still has to declare the income.
Late preparation is treated the same as failing to prepare it — an offence under section 120(1)(b), carrying a fine of RM200 to RM20,000, up to six months' imprisonment, or both. Issue by 31 March.
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Sources: Income Tax Act 1967 sections 83A and 120(1)(b); form CP58 [Pin. 1/2022] and the accompanying LHDN guidance notes. This page is general information about a filing obligation, not tax advice for your particular facts. Where an incentive arrangement is unusual — shared agencies, incentives routed through a third party, or a mix of employment and agency income — take advice before issuing. Talk to LTT.