It will be taxed at company level first before it is tax exempted when going into the hand of individual.
So there is no tax avoided in the process.

It is company tax vs personal tax only.

Company tax is flat rated, at 19% (for SME on first 500K profit) and 24%.
While personal income tax is step up type whereby effective tax rate is much lower especially at lower level.

So it may not an advantage going this route, unless for the money exceeds the personal highest bracket, whereby effective personal tax rate become more than company tax.

Difference between director drawing salary vs director fee

Director fee
Once in a year - so you only declare when there is profit. So it gives flexibility in term of amount when there is a profit or based on company profit level.

Director salary
Fixed drawing every month. EPF, Socso payout on director is tax deductible as company expense.

This post has been edited by cherroy: Sep 12 2016, 09:39 AM