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 )

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.

The receipt that only acceptable by IRB only can claim..^^

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Added on March 22, 2008, 10:45 pmu buy insurance pay yearly din hv receipt?

yes its good that streamyx bill can claim for exemption..

by having exemption, of course it is your expenses, but that expenses will not be taxed, which means if total income RM2.5K/month = RM30K/year, only exemption if 11% KWSP and RM8K yearly expenses, your total tax would be RM86.00

but if streamyx bill is allowed for exemption, using same example as above and streamyx bill RM100/month = RM1.2K/year, your total tax would only be RM50.00; that's quite a difference right, especially when it helps to lower your tax bracket.

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Added on January 1, 2009, 2:17 pm
hehe sorry again, i still dont get u... total income per year of more than RM2500 (after deductions) is taxable, in this case only 1% = RM25. but with rebate RM350, it may seem that it is not taxable. but this rebate might be increased,reduced or taken away by the government so it doesn't mean that the income is not taxable. u have to declare your income if you have monthly salary.

and again based on my previous example, after minus rebate and deductions, a person having salary of at least RM2300/month =  RM27,600 would have to pay tax..lower than that is covered by the personal rebate.

if yearly salary is RM24,907 don't have to pay any tax as it is covered by the rebate. please correct me if i'm wrong.

p/s: ok i done a bit more of calculations, if your salary is RM2233.33/month = RM26,800 / year, kwsp 11% and RM8K relief, your income tax would be RM0.59