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 Taxable income for individuals, businesses

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sode-no-shirayuki
post Mar 26 2008, 03:02 PM

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If i'm working as a permanent staff in company A, yet i'm also a partner in company B, which tax form should i fill in?

And in terms of partnership, all profits gain from it will not be taxable? How about profit sharing? Do i add those figure into personal income tax?


sode-no-shirayuki
post Mar 27 2008, 11:36 AM

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QUOTE(happy4ever @ Mar 27 2008, 06:27 AM)
I believe in B form, not BE.
You can state your other source of income (from company A)

When you have your own business, your profit share adds up into your income.
BUT....don't declare all your profits just yet.

You need to add in company expenses first:
1) Meal allowances (yes, even bfast, lunch, dinner, supper. keep all receipts. Even eating out with parents also. You can say its for "dinner with client")

2) Entertainment fees (karaoke, movies, disco, pubs, for "client")

3) Car allowances (petrol, parking, servicing. Car used for your business)

4) Insurance (for yourself, and business assets i.e. notebooks, servers etc)

5) Misc (miscellaneous charges incurred for your business)

Then what is remained after deducting from all the above expenses, will be your taxable income.

This way you enjoy spending first, then taxed on your remainder. Employees like myself gets my pay taxed first before i can use the remainder to spend. Thats the benefit of owning a business.

However, if your taxable business income is low, then it doesn't reflect well on your business, thus difficult to secure a business loan.
They have no idea how to valuate your income, which isn't consistent.

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Thanks for your info. It's much clearer now...
sode-no-shirayuki
post May 9 2008, 03:12 PM

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Am currently facing a problem while paying my income tax via cimb. This error message pop out " Cukai No / Tax No is invalid" once i click submit. I've double checked my tax no (OG2036xxxxxxx) already, and it's correct.

Anyone know what's the reason behind this?

 

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