Malaysia tax planning services, whether personal or company, are interrelated and integrate part of the planning process. TANNET offer clients a full range of Malaysia tax planning services right from planning and advice to completion of Malaysia Tax Returns and liaison with the Royal Malaysian Customs Department and Inland Revenue Board on your behalf. We provide our services to a wide range of clients operating across a broad spectrum of commercial, industrial, professional and non-profit sectors.
Malaysia Tax planning services included:
1. Personal tax planning in Malaysia and submission of personal income tax
Any individual who has income accruing in or derived from Malaysia or received in Malaysia from outside Malaysia for a year of assessment is liable to tax in Malaysia. A resident individual is subject to tax on income accruing in or derived from Malaysia; and income received in Malaysia from outside Malaysia, while a non-resident individual is subject to tax on income accruing in or derived from Malaysia. However, with effect from the year of assessment 2004, income received in Malaysia by an individual for a year of assessment that is derived from sources outside Malaysia is exempted from tax.
2. Malaysia Enterprises tax planning, preparation and submission of company tax returns
Resident companies are subject to tax on income accruing in or derived from Malaysia. Income received in Malaysia from outside Malaysia is exempt from tax, except for companies carrying on the business of banking, insurance or sea or air transport. Assessable incomes for companies includes gains from a business, dividends, interest and rentals, royalties, premiums and other gains and profits. Non-resident companies are subject to tax only on income accruing in or derived from sources within Malaysia. Foreign income is exempt, whether received in Malaysia or not. Business income of non-residents derived through a permanent establishment in Malaysia is subject to tax.
3. Multilateral trade tax planning
Under the agreement, a wide range of financial information will be automatically exchanged between the five countries. The agreement is to help catch and deter tax evaders as well as to provide a template for wider multilateral automatic tax information exchange.
4. Maximization of deduction of expenses to save cost for your business
Deductions are important because they save businesses money come tax time. According to the IRS, any expense that is “ordinary and necessary” to run a business can be written off for tax purposes. But for every common write off – taking clients to dinner, booking airfare for a conference – there are many lesser-known deductions just waiting to be taken advantage of. By incorporating these frequently missed deductions into your overall tax plan, you’ll be able to save hundreds, if not thousands, of dollars at the end of the year.
5. Minimization of Tax Liabilities
One way to minimize taxes is to reduce your income, by lowering your Adjusted Gross Income (AGI). Your AGI is the sum of your income from all sources minus any adjustments, or deductions. Adjustments may include contributions to a traditional IRA, student loan interest that was paid during the year, tuition and expenses, alimony paid, and classroom-related costs for teachers. The AGI is a key element in determining your tax liability. Because adjusted gross income is so important, many people choose to focus much of their reduction-related attention upon it.
Almost everyone can take the standard deduction, and some people are able to itemize their deductions. Itemized deductions include expenses for health care, state and local taxes, personal property taxes (such as car registration fees), mortgage interest, gifts to charity, job-related expenses, tax preparation fees, and investment-related expenses. One effective tax planning strategy is to keep track of your itemized expenses throughout the year using a spreadsheet or personal finance program. You can then quickly compare your itemized expenses with your standard deduction, and use the higher of the two to compute your tax liability.
6. Tax Planning for Employee
Many have approached me to ask if there are any tax planning opportunities for employees. For the wage-earners, many complain that too much of their hard-earned money goes towards payment of taxes. This is a sad fact, but it’s TRUE. The taxes that you pay could reach as high as 26% of the salary that you earn, which is even higher than what the small-medium companies pay, which is 20% on the first RM500, 000 of its chargeable income and 25% on the balance. Heck, the tax rate of an employee is already 26% on any chargeable income exceeding RM100, 000.
Contact for Malaysia Service
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Malaysia Office hotline by 603- 2141 8908 or email to firstname.lastname@example.org.
Add: Unit 6.06, Level 6, Amoda 22, Jalan Imbi, 55100, Kuala Lumpur, Malaysia.
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