Creating a CP38 Deduction
In certain circumstances, the Inland Revenue Board (IRB) can require employers to recover tax owed by employees through deductions from monthly wages by issuing the Form CP38 to employers. Employers must then deduct CP38 and STD amounts from employees' remuneration.
The purpose of this procedure is to create the relevant CP38 deduction records for the affected employees so that payroll can use the information to effect the deductions for the month.
The additional tax types for Malaysia must be entered before proceeding with the following procedure.
You can configure the additional tax types using the Implementation Guide of the Payroll Malaysia component. Choose
- Enter the Income tax number issued by the Inland Revenue Board (IRB).
- Enter the Income tax office to which the employee's tax will be remitted.
A CP38 record has been created. To fulfill the conditions for a CP38 deduction, you must perform the subsequent procedure,Create an Additional Tax Deduction.