CP 58 Urgent Information Required By MATTA
- Created on Sunday, 04 November 2012 05:03
- Last Updated on Sunday, 04 November 2012 05:11
- Published on Sunday, 04 November 2012 05:03
CP 58 URGENT INFORMATION REQUIRED BY MATTA
Kindly be informed that MATTA had organized a briefing session for MATTA members on the Income Tax Act Section 83A (CP58) on 31st October 2012.
Based on that briefing session and with the support of the other travel and tour Associations, MATTA is seeking an urgent meeting with the relevant authorities in Lembaga Hasil Dalam Negeri (LHDN) to discuss the impact of CP 58 on our members business and income.
SO, WHAT IS CP 58 AND HOW WILL IT AFFECT YOU? CP58, is a statement of monetary and non-monetary incentive payment to an agent, dealer or distributor pursuant to Section 83A of the Income Tax Act 1967. It is EFFECTIVE from year 2012 and beyond. So, if you organize incentives trips on behalf of your client who may be companies who send their dealers, agents or distributors on incentive trips as a way of appreciation for achieving a sales target, NOW, these dealers, agents or distributors will have to PAY TAX on this incentive trip.
to PAY TAX on this incentive trip.
WHAT DOES THIS MEAN? These dealers, agents or distributors may now choose NOT go on this incentive trips which will affect you, the travel agents / tour operators directly if you are selling and conducting incentive trips. Your business may see a decline and your revenue may be affected.
Even if you as the bosses or owners go on a FAM trip organized by an NTO or by an Airline, you will now have to pay tax on this FAM trip. This may affect the way you would need to understand and promote new destinations and new products.
So, MATTA requires some important information from you in order to show to the relevant government authorities that the implementation of CP 58 will have serious repercussion on our members’ income and will affect their viability to carry on their business.