A Commission Confirmation Letter is essential in formalizing commission-based business relationships in Malaysia. This document is typically used when a company needs to officially confirm commission arrangements with sales representatives, agents, or other partners who earn commission-based compensation. The letter serves multiple purposes: it provides clear documentation of the commission structure, ensures compliance with Malaysian tax and employment laws, and helps prevent future disputes by clearly stating all terms. The Commission Confirmation Letter should be issued at the start of a commission-based relationship or when there are significant changes to existing commission arrangements. It needs to align with Malaysian legal requirements, including the Contracts Act 1950 and relevant industry-specific regulations, while providing sufficient detail about commission calculations, payment terms, and any conditions or prerequisites for earning commissions.

1. Letterhead and Date: Company letterhead with full business details and current date

2. Recipient Details: Full name and address of the commission recipient

3. Subject Line: Clear indication that this is a Commission Confirmation Letter

4. Opening Reference: Reference to any prior discussions, agreements, or relevant context

5. Commission Details: Specific commission rate(s) or amount(s) being confirmed

6. Calculation Method: Clear explanation of how the commission is calculated

7. Payment Terms: When and how the commission will be paid

8. Performance Period: The period during which this commission arrangement applies

9. Signature Block: Authorized signatory details and signature