Under some circumstances, the Inland Revenue Board will request employers to recover the tax owed by employees through the employees’ wages. The notification to the employers will be in the form of Form CP38. The employees’ details in the form is used by the employer to effect the recovery of STD from the wages accordingly.

You will decide whether to use this component based on either of the following :

• Receipt of CP38 from IRB
• The employee/s receive additional taxable income.

This component is related to Infotype 0198 Schedular Tax Deduction Subtype 02 CP38 Tax Deduction, and in turn to Infotype 0199 Additional Tax Deduction.