tax rules are same for company and personal, only diff is that tax rate for company normally higher (example flat tax rate 19% for SME for 1st 500k vs personal tax table which is normally lower. then RPGT after 5 years personal 0% vs company 5%). just do not think from tax point of view. i will not say ikan bilis dont go for sdn bhd, but those new to business dont go for sdn bhd.... the admin cost, due date and penalties will kill you. but sdn bhd is when you feel ur business is growing and need a better platform... you want to do business with large corporation, then you need to prepare your sdn bhd. but planned ahead, new sdn bhd ppl wont give a damn too.... so planned 3 years ahead.

if you do not planned to tender project, trying to get larger corp customer. then i guess you should stay as non sdn bhd.. i have seens huge sole prop company before and the boss wouldnt want to change it into sdn bhd. being a sdn bhd doesnt mean you are big shot or so, same goes to listed company. look at 1u owner and developer see hoy chan, they stayed as sdn bhd until today simply because listing requirement is way too mafan. same goes to sdn bhd for a sme, it doesnt really beneift you much. every1 has their way, some want to grow their business. some just want their business to maintain and enjoy life. i have a relative who is constantly taking risk and try hard to grow his business despite his old age.... and all of us worried and ask him to lower a gear or retire... but his answer was "its my hobby".

first of all, you need to do your account. then you need to do your tax comp. and i would want you to know, there is no way you can avoid being tax audit. they audit according to risk,tip off from public and random selection.


first of all, you need to know there are 3 types in general :-

1. employee = submit YA2016 latest by apr 2017
2. self employed = submit YA2016 latest by jun 2017
3. sdn bhd = submit according to your year end. (and director has to submit according to 1 or 2)

we need more info to advice you.

we have been discussing this topic over and over again. it all boils down to 3 simple steps,
1. individual or company
2. where you perform your work
3. do you pay tax in that particular country?


in your case, you said mix... i would say high chances you need to pay tax. simply because most of your time is in malaysia, how frequent you have to go overseas ? once a month and the stay overseas for 2 weeks every trip? how do you prove your work is done overseas?

i guess you are not paying any tax in the particular country as well, do you have work permit over there? do you have a tax number over there? did your company deduct withholding tax ? if you are paying tax in that country, as for the receipt as evidence to show lhdn.

to be honest, llp is still very new to most of us here. you should call LHDN to verify about the estimated tax payable, aka month instalment.

i will just share i wat i know with you, if im not mistaken LLP tax treatment is same as sdn bhd. meaning you have to estimate your profit for next year and start paying your tax. its just like pcb for salaryman, so company has to pay monthly for their estimate profit for the year. however, new SME company is exempted for this tax estimate for 2 years.

lastly, you must register llp tax number. as for personal, it is advisable to register as well. give lhdn a call.

LLP im not sure, but if its same as sdn bhd then it has another tax number. better give LHDN a call or best go to their office with all your LLP documents.

a side note, OG tax file number? do you have other business other than this LLP? if LLP is same as sdn bhd, director is taking a salary and do not consider business source hence they are same as employee SG number due date on apr yearly. please verify this with lhdn as well.

first of all, count day by day is kind easy. just go to immigration and check the system and done. auditors are used to calculate item by item more than 365, and now with the help of technology its even easier to trace.
**( i have even sit near to a toll plaza to calculate how many cars have pass tru the toll house, imagine that vs checking with immigration records. piece of cake)

and about the dispute, yes. i remember reading a court case roughly around early 90's, a tax resident took LHDN to court because LHDN disagree on him/her tax residence status.

This post has been edited by klthor: Jan 24 2017, 11:14 AM

well small potatoes they normally wont put in so much afford to check, but if the difference (before penalties) is huge then its totally worth it to check. but as far as i know, it is quite unlikely unless there is something that tip off or red flag. ie, your employer send you overseas for training + business + etc + etc. simply becoz if you failed the 182 days rules, there are another 3~4 ways to determine tax residences status.

free lance salesman. all you need to do is record as commission, no other fancy name such as fee/salary/profit sharing etc etc. you would like to have his ic number when IRB tax audit you. as for the expenses, its in grey area if all these bill is under B's name. it depends on how you convince the tax officer when they come to your door step.

1. Tax relief YA2016, not sure yet will look into it later when i have time. but education fees normally exclude professional certificates ~.~ so its for diploma, degrees. ahh i was wrong, maybe its for Master and PHD too. but this is until YA2015 only. but ACCA no idea


To promote a culture of lifelong learning among Malaysians, the Government proposes tax relief of up to RM5,000 on education fees be extended to all post-graduate studies (Masters and Doctorate leve), effective from Year of Assessment 2008.

Every individual are eligible to claim a RM5,000 relief each in respective tax returns provided that the post-graduate studies are at institutions or professional bodies in Malaysia that are recognised by the Government or approved by the Minister undertaken for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications. Please note that this deduction is effective only from YA 2008 onwards.



2. travelling allowance MAX RM6k, but it should be shown in your EA under 'income not taxable'. if they added in your gross salary, then maybe you need to get ready for your appointment letter, employment letter or even pay slip to show as an evident.

This post has been edited by klthor: Feb 23 2017, 12:22 PM

yeah max rm6k, but you have to know the amount in your EA is allowance + salary or like i have said the payroll system deduct it out for you already, parking under income not subjected to tax.

This post has been edited by klthor: Feb 23 2017, 02:15 PM

if not mistaken, it is taxable.

wah thats new, not from salary deduction? wats the meaning?

u need to make sure the allowance is not excluded from ur gross salary. and make sure its travelling allowance in ur employment letter. during my days as student, u can deduct allowance according to your petrol spending. but it has been awhile i didnt check... so no idea if this still valid.

u can deduct max Rm6k. but if you wanna deduct more than that, u have to have a record of your petrol receipt etc etc (if didnt change la).

actually if you read kfully, house to office = max RM2.5k (if not mistaken)
to do your work like driving around office, client place, supplier etc etc =RM6k

as for calculation, its either you do a very specific recording or just flw norm of add back 50% or 1/3. depends on how you justify.

and be reasonable ~.~" kancil is almost impossible to pump RM12k petrol a year haha

i do not have an answer for that. be reasonable thats all i can say.

im interested in your double paid issue. Could you go have a look on the Year Assessment on your payment receipt, is it 2017 or 2016?

that is pretty weird, 2015? when did you submit and pay for YA 2015? according to my knowledge, LHDN normally refund YA by YA and they normally wont contra with another YA and refund you directly. the only reason they hold your refund is because they have queries on your tax return.

this is possible.

sdn bhd business without any sole prop or partnership = treated as employee hence apr'17
sole prop, partnership = business source = June'17