computer is rebate RM500 every 5 years

r u seeking tax planning for individual or company?

For company, if the paidup capital is less than RM2.5million, the first Rm500k is taxable @ 20%, so for small company u r advisable to limit up the paidup capital.

U can appoint ur family members as directors as well by paying them directors fees,
hence the EPF rate can be increase from 11% to 19%.

Ur company can frank/issue dividend to directors by using retained earnings, distribution in specie as well. Hence ,the profit of ur company can be spread over to other directors who will be taxed at individual rate. By franking dividend, u have to make sure that there is enough S108 dividend credit in ur company account,else there'll be S106 penalty .

By paying dividend, the recipient can claim S110 set off (rebate at tax payable) @ 28% ,hence the possibility of getting tax refund is high if ur tax paybale rate or marginal rate is lower than 28%

there's more to go...

exactly my plan (see tactic no 3)

is there any minimum age for a director? should the process go through lawyer and be made public thru newspaper?
moar. moar

(somehow, i sense that you are an auditor lurking inLYN forum )

ok..what's the different between relief and rebate.im not in the working force.still studying.but this thread is interesting.sorry if the question seems dumb

Me 3. Haha..totally correct.

haha...study too much of Advance taxation leh...
anyways, the above is what im wish to mention lol... part of it...
a company secretary will do the job...

relief deduce from gross income. rebate deduce from tax chargeable to get the final number. correct me if wrong. i'm newbie too 

Personal salary RM2.5k per month subject to income tax?

Personal salary RM2.5k per month subject to income tax?

Personal salary RM2.5k per month subject to income tax?

There are desk audits for Self-Employed (BE Category) & external audits for Businesses (B & P)...No, tax officers won't take any money on the spot nor accept any other offerings... ...heck, they even bring the Hasil brand mineral water to maintain independence...

The best way to reduce tax for self-employed is still thru dividends....this is especially the case for company director's and important personnel within the company who earn 5 figure monthly salary....anyway, just remember, having a higher level of annual income would allow u to purchase more property/assets without triggering an investigation.

OK. this thread is not for the faint at heart.

This thread serves the purpose to help those with an annual income exceeding RM70,000 or businessess where you can't alter your profit or loss

the question:

How do I reduce my income tax?

Of course, some of my ways would be:

1. Increase expenditure
2. Buy lots of assetts - vehicles h&p, building s&p, etc
3. Pay high salary to "family employees"
4. pay zakat
5. computer - rm 3,500 insta-rebate (sadly, every 3 yrs only)

any of you got any more ideas? i do hope LYN hs some real accountants / editors who can share their thoughts on how to reduce the taxes without breaking any law

any book also can ah? i read somewhere onli self improvement book onli consider for such relief. it mean if it directly can improve ur service then its apply. if it indirectly related to our job, then cant apply. they give example if an engineer buy accounting book, then cannot get that relief la. neway is it relief or rebate?

IINM, any amount you earn, even 1k/mth, you need to fill up the BE form and declare to LHDN, although no tax, just for their filing purpose, and it may be useful for you to apply loans, etc.

1 noob question here,

my current salary is less than 2.5k but if i add my allowances and bonus, my annual income will definitely more than 30k. will i get tax for that?

every1 of us will be tax audit once for every 5 years. tht's the IRB target. so do keep ur receipts and whatever supporting documents up to 7 years.

One quick question. If I buy medical and life insurance for parent, can it be considered as medical expense for parents and deductible from tax? Thanks.