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CP38

CP38 is an extra tax deduction that the tax authority (LHDN) instructs you to take from an employee's pay, on top of their normal monthly tax. It is usually used to collect tax the employee still owes from a previous year.

When to use it​

Use it only when you receive a CP38 instruction from the tax authority for a specific employee. The instruction tells you how much to deduct and for how long.

How to add it​

  1. In the menu, go to Payroll → Payroll Items → CP38.
  2. Choose the employee named in the instruction.
  3. Enter the amount stated in the CP38 instruction.
  4. Set the period.
  5. Click Save.

The CP38 amount is deducted in addition to the employee's normal tax (PCB).

warning

Only add a CP38 deduction when the tax authority has formally instructed it, and enter the exact amount stated in the instruction. This money is paid to the tax authority on the employee's behalf.

note

CP38 is different from normal monthly tax (PCB/MTD), which the system already calculates automatically.