Nov 2 2009, 11:25 PM
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?
1) Yes, you got more advantage with S/B as compared individual, somemore SME that paid up capital below Rm2million (forget the exact figure), tax rate is 20% on the first 500K profitQuestion:
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?
3) Not apply on your case, foreign source income means the income is generated at there (they assume you are being taxed at there in the first place, you pay tax based on where business operate) then remit back, your case is sales and payment come from foreign, but you are operating here.
4) Roughly yes.
5) extra cost incurred with need of secretary and accountant service for account audit. You gain more advantage, especially limit your liability with S/B.
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