What is CP58?
CP58, also known as the Malaysian Tax Deduction Schedule, is a form prescribed by the Inland Revenue Board of Malaysia (IRBM). It serves as a statement of payments made to resident contractors or suppliers and is designed to facilitate tax compliance and ensure proper deduction and reporting of expenses.
Purpose of CP58:
The primary purpose of CP58 is to enable the tax authorities to monitor and verify whether the appropriate withholding tax has been deducted by a taxpayer on payments made to contractors or suppliers. By submitting CP58, taxpayers provide transparency and accountability regarding these payments.
Who Needs to File CP58?
CP58 is applicable to all taxpayers who make payments to resident contractors or suppliers for services rendered, including payments for professional fees, technical services, rental of movable property, and more. It applies to both individuals and businesses that are liable to withhold tax from such payments.
CP58 Requirements:
To complete CP58 accurately, taxpayers must provide the following information:
Details of the taxpayer: This includes the taxpayer's name, identification number (such as the Malaysian Identity Card number or business registration number), and contact information.
Details of the resident contractor or supplier: This includes the recipient's name, identification number, and address.
Payment information: The taxpayer must provide a breakdown of payments made to the resident contractor or supplier during the specific period covered by the Form CP58.
Tax deducted: The amount of tax withheld from each payment made to the resident contractor or supplier should be included.
Filing and Submission:
CP58 is typically filed on a yearly basis and must be submitted to the IRBM no later than 31st March of the following year. The form can be submitted electronically via the official IRBM e-Filing system or physically at designated IRBM offices.
Penalties for Non-Compliance:
Failure to file CP58 within the specified timeframe or providing inaccurate information can result in penalties imposed by the tax authorities. These penalties may include fines, interest charges, or other enforcement actions. It is essential to adhere to the filing deadlines and ensure the accuracy of the information provided.
Record-Keeping Requirements:
Taxpayers must maintain proper records and supporting documents for at least seven years from the date of CP58 submission. These records should include invoices, contracts, payment vouchers, and any other relevant documentation.
Conclusion:
Understanding the basics of CP58 is crucial for businesses and individuals operating in Malaysia. By comprehending its purpose, requirements, and implications, taxpayers can ensure compliance with the tax authorities and avoid penalties. It is advisable to seek professional advice or consult the official guidelines provided by the IRBM to stay updated with any changes or amendments related to CP58. Remember, accurate and timely filing of CP58 helps foster transparency and contributes to a well-regulated tax system.
