Nov 18 2009, 09:54 AM
QUOTE(ExpZero @ Nov 2 2009, 08:07 PM)
Hi, I started my business in sole proprietor 2 years ago and now my profit is forecast will be around 200k-500k. I found that sole proprietor tax rate is higher than sdn bhd.
Question:
1)Should I move to sdn bhd to avoid too many tax? or stay in sole proprietor?
2)Any idea to avoid tax(legal way).
3)My business is selling software online, I found from article that "Foreign source income remitted into Malaysia are exempted from tax.", that's means I'm exempted from tax? since I'm purely earn from oversea.
4)I heard IT company can be exempted from tax as long as it's MSC status, so does this means I have to apply for sdn. bhd and apply for MSC status?
5)Is there any hidden disadvantage when moving to sdn bhd?
With the profit forecast(if its true) that you mentioned, i would suggest you convert into Sdn Bhd. Regards the tax, there are legal ways to eliminate by consults the tax consultants. With that amount of profits that you estimated(which consider big amount), it is wise to limit your liability. With this earning profit, those accountance and audit fees is nothing to ponder about(1-3k yearly) compare the profits that you claim.Question:
1)Should I move to sdn bhd to avoid too many tax? or stay in sole proprietor?
2)Any idea to avoid tax(legal way).
3)My business is selling software online, I found from article that "Foreign source income remitted into Malaysia are exempted from tax.", that's means I'm exempted from tax? since I'm purely earn from oversea.
4)I heard IT company can be exempted from tax as long as it's MSC status, so does this means I have to apply for sdn. bhd and apply for MSC status?
5)Is there any hidden disadvantage when moving to sdn bhd?
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