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...

Under Individual Assessment

If your annual income is 70k annually,

70k - 6k ( EPF 11%) - 8k (personal relieft) - 3k (insurance premium) = 53k (chargeable income)
Hence, u have to pay TAX RM1,525(on First 35k) and RM2340 ( remaining 18k @ 13%)


Actually by using those info u provided isnt enough.

U can claim other relief as well in order to reduce your chargeable income.
FOr example,
Wife relief (RM3k) ,
Disable wife(Rm3k),
Disable tax payer (RM6k),
Medical Expenses for parents (RM5k),
Medical examination expenses>serious disease for taxpayer, spouse, and children with receipts (rm5k),
Supporting equipment for disable taxpayer,spouse,children or parents (RM5k),
Child relief , >18yrs old studying in local/overseas U/college (RM4k),
disable child (RM5k),
disable child studying in local/overseas Uni/college (rm9k),
EPF or approved fund n life insurance premium (RM6K),
Premium on EPF annuity scheme (RM1k),
Education fees paid by taxpayer for his own improvement(RM5k),
purchase of books,journals,magazines, or other similar publications for the use of taxpayer,spouse or children (RM700),

FOR 2005-2006 PErsonal COmputer rebate is RM500 every 5 yrs,
FOR 2007 RM3000 every 3 years

Other rebates including Wife(joint assessment RM350), zakat n fitrah RM350

In order to reduce your chargeable income,u can claim reliefs as above in order to reduce your chargeable income.

Besides, u can set off your tax payable amount by S110 set off (DIVIDEND INCOME@28%), S 132 bilateral relieft, S133 unilateral relieft, income tax paid under self-assessment- monthly,bi-monthly

As a results, the possilibility of getting REFUND is quite high.

What he meant is buying more FIxed asset under company's name,
hence can claim annual n initial allowance (capital allowance) to set off aggregate income

actually those taxable allowance are called BENEFIT IN KIND, eg: accomodation,cars,handphone,drivers,maid n etc.. under section 13 (1).

company can deduct expenses for those allowances that are provided to u, meanwhile u are only taxable on fixed amount basis. In short, which means if your company offer a domestic servant for u, they'll pay the servant's salary for u every months, til end of the year, you are taxable RM4800/annum for it,which meant u are still liable to tax on those benefit. Let's say your taxable rate is 20%, Rm4800 @20% = RM960, and Rm960/12= RM80 , so it's equal to something as you are hiring a servant for RM80/month
Actually both side gain benefit as well

For example, House(fully furnished) Rm3360/annum .gardener RM3600/annum, leave passage 3 locals or 1 local n 1 overseas restricted to RM3000/annum, CARS(including petrol) that your company provided to u are taxable base on BIK schedules (too long to elaborate) if u wanna know the rate PM me

any1 got company tax problem?

This post has been edited by xcrue: Nov 25 2006, 10:48 PM

no... EPF is not taxable if under Approved fund.
Ur employer can even deduct up to 19% EPF against biz income

Good1
This is the summary after deduct only personal relief of RM8000.
<Rm35k chargeable income got Rm350 rebate as well.

HAHA.. i gonna crazy with it..