Tips to reduce income tax 降低所得税的贴士
Tips to reduce income tax
1. Maximize All Available Tax Deductions
Tax deductions help reduce your taxable income. Your annual taxable income is calculated as total income minus tax deductions. Therefore, utilizing all available tax deductions can significantly lower your tax liabilities.
It is crucial to keep complete and well-organized tax records to ensure compliance and be prepared for potential audits by the Inland Revenue Board of Malaysia (IRBM) in the future.
2. Submit and Pay Income Tax on Time
Failure to file or pay income tax on time may result in hefty penalties. As a responsible taxpayer, it is essential to submit tax filings and make payments promptly while keeping all relevant records well-organized for future reference.
3. Comply with Income Tax Laws
The Inland Revenue Board of Malaysia (IRBM) collects and administers direct taxes under the following laws:
• Income Tax Act 1967
• Petroleum (Income Tax) Act 1967
• Real Property Gains Tax Act 1976
• Promotion of Investments Act 1986
• Stamp Act 1949
• Labuan Business Activity Tax Act 1990
By filing your income tax in accordance with these laws, you will likely encounter fewer issues with tax authorities. Additionally, the IRBM provides public guidelines to assist taxpayers in understanding their tax obligations.
4. Apply for Tax Incentives
The Malaysian government offers various tax incentives to help companies reduce their tax burdens. Under the Income Tax Act 1967, these incentives include:
• Reinvestment Allowance (RA)
• Approved Service Projects (ASP)
• International Procurement Centers (IPC)
• Regional Distribution Centers (RDC)
• Biotechnology Industry Incentives
• Approved Business Incentives
Additionally, under the Promotion of Investments Act 1986, companies can benefit from:
• Investment Tax Allowance (ITA)
• Infrastructure Allowance
• Pioneer Status (PS) Tax Incentives
By taking advantage of these incentives, businesses can optimize tax savings and improve their financial performance.
5. Seek Advice from a Tax Consultant
In most cases, hiring a tax specialist or accountant not only saves you time but also helps you maximize tax refunds or reduce taxable income.
As one of the leading tax professionals in Malaysia, we stay up to date with the latest tax regulations. We can identify tax reliefs and deductions that you may not be aware of, ensuring you pay only what is necessary.
Best of all, our fees are reasonable and can be deducted from next year’s taxable income, making our services a smart and cost-effective investment for your business.
6. Engage in More Charitable Giving
Donating to charity is not only a meaningful act of kindness but also an effective way to reduce your taxable income.
When making donations, always request an official receipt and keep it for tax filing purposes. These donations qualify for tax deductions when reporting your income tax.
Important Note:
Your donations do not directly reduce the amount of tax payable. Instead, they are deducted from your taxable income, which results in partial tax savings, not a full tax rebate.
7. Earn Tax-Exempt Income
Certain types of income are exempt from income tax. The more tax-exempt income you earn, the more you can avoid a proportional increase in your taxable income.
Ways to generate tax-exempt income include:
✔ Depositing funds in licensed banks
✔ Investing in bonds and stocks with tax exemptions
✔ Receiving tax-free employee benefits, such as childcare allowances
By strategically maximizing tax-exempt income, you can legally reduce your tax burden while growing your wealth.
8. Lower Your Income Tax Rate
The maximum tax rate for companies or limited liability partnerships (LLPs) in Malaysia is 24%. If your personal income tax rate exceeds 24%, it is more tax-efficient to have your business income taxed under a company or LLP rather than as personal income.
Alternatively, if your personal tax rate is lower than 24%, you can strategically distribute business income through:
✔ Director’s fees
✔ Salaries
✔ Other allowable benefits
By optimizing your tax structure, you can legally reduce your overall tax liability while maximizing your net income.
降低所得税的贴士
1. 善用所有可能的税务减免
税务减免可以减低您的可征税收入。您每年的总可课税收入是在收入减去税务减免后得出。因此善用所有可能的税务减免绝对会让你节省更多税务。
切记保留好完整的税务记录以应对未来内陆税收局(IRBM)的审查。
1. Maximize All Available Tax Deductions
Tax deductions help reduce your taxable income. Your annual taxable income is calculated as total income minus tax deductions. Therefore, utilizing all available tax deductions can significantly lower your tax liabilities.
It is crucial to keep complete and well-organized tax records to ensure compliance and be prepared for potential audits by the Inland Revenue Board of Malaysia (IRBM) in the future.
2. Submit and Pay Income Tax on Time
Failure to file or pay income tax on time may result in hefty penalties. As a responsible taxpayer, it is essential to submit tax filings and make payments promptly while keeping all relevant records well-organized for future reference.
3. Comply with Income Tax Laws
The Inland Revenue Board of Malaysia (IRBM) collects and administers direct taxes under the following laws:
• Income Tax Act 1967
• Petroleum (Income Tax) Act 1967
• Real Property Gains Tax Act 1976
• Promotion of Investments Act 1986
• Stamp Act 1949
• Labuan Business Activity Tax Act 1990
By filing your income tax in accordance with these laws, you will likely encounter fewer issues with tax authorities. Additionally, the IRBM provides public guidelines to assist taxpayers in understanding their tax obligations.
4. Apply for Tax Incentives
The Malaysian government offers various tax incentives to help companies reduce their tax burdens. Under the Income Tax Act 1967, these incentives include:
• Reinvestment Allowance (RA)
• Approved Service Projects (ASP)
• International Procurement Centers (IPC)
• Regional Distribution Centers (RDC)
• Biotechnology Industry Incentives
• Approved Business Incentives
Additionally, under the Promotion of Investments Act 1986, companies can benefit from:
• Investment Tax Allowance (ITA)
• Infrastructure Allowance
• Pioneer Status (PS) Tax Incentives
By taking advantage of these incentives, businesses can optimize tax savings and improve their financial performance.
5. Seek Advice from a Tax Consultant
In most cases, hiring a tax specialist or accountant not only saves you time but also helps you maximize tax refunds or reduce taxable income.
As one of the leading tax professionals in Malaysia, we stay up to date with the latest tax regulations. We can identify tax reliefs and deductions that you may not be aware of, ensuring you pay only what is necessary.
Best of all, our fees are reasonable and can be deducted from next year’s taxable income, making our services a smart and cost-effective investment for your business.
6. Engage in More Charitable Giving
Donating to charity is not only a meaningful act of kindness but also an effective way to reduce your taxable income.
When making donations, always request an official receipt and keep it for tax filing purposes. These donations qualify for tax deductions when reporting your income tax.
Important Note:
Your donations do not directly reduce the amount of tax payable. Instead, they are deducted from your taxable income, which results in partial tax savings, not a full tax rebate.
7. Earn Tax-Exempt Income
Certain types of income are exempt from income tax. The more tax-exempt income you earn, the more you can avoid a proportional increase in your taxable income.
Ways to generate tax-exempt income include:
✔ Depositing funds in licensed banks
✔ Investing in bonds and stocks with tax exemptions
✔ Receiving tax-free employee benefits, such as childcare allowances
By strategically maximizing tax-exempt income, you can legally reduce your tax burden while growing your wealth.
8. Lower Your Income Tax Rate
The maximum tax rate for companies or limited liability partnerships (LLPs) in Malaysia is 24%. If your personal income tax rate exceeds 24%, it is more tax-efficient to have your business income taxed under a company or LLP rather than as personal income.
Alternatively, if your personal tax rate is lower than 24%, you can strategically distribute business income through:
✔ Director’s fees
✔ Salaries
✔ Other allowable benefits
By optimizing your tax structure, you can legally reduce your overall tax liability while maximizing your net income.
降低所得税的贴士
1. 善用所有可能的税务减免
税务减免可以减低您的可征税收入。您每年的总可课税收入是在收入减去税务减免后得出。因此善用所有可能的税务减免绝对会让你节省更多税务。
切记保留好完整的税务记录以应对未来内陆税收局(IRBM)的审查。
2. 准时呈报及缴交所得税
不准时呈报或缴交所得税都会被重重的罚款。身为一个好的纳税人一定要准时呈报及缴交所得税并收好所有相关记录。
3. 准从所得税法令
内陆税收局 (IRBM) 根据以下的法令收取及管理直接税:
- 1967年所得税法令
- 1967年石油（所得税）法令
- 1976年产业盈利税法令
- 1986年推广投资法令
- 1949年印花税法令
- 1990年纳闽生意活动税务法令
因此当您依据以上的法令呈报您的所得税，你将毫无疑问的面对更少的问题。内陆税收局(IRBM)也有发布大众指南提供群众相关指引。
4申请税务奖励
政府提供多样化的税务奖励协助公司降低税务支出。这些税务奖励在1967年公司法令下包括再投资津贴，批准服务计划，国际采购中心，区域分销中心，生物技术和批准生意等类别。除此之外，1986年推广投资法令也有如投资税务津贴，基础设施津贴及开拓者公司等的税务奖励。
5. 谘询税务顾问的建议
在大多数的情况下，雇佣税务专员或会计师不只是省下您的时间，这同时会协助您得到税务退款或是缴付更低的所得税。我们是其中一间与时并进的税务专家。我们可能会发现你能享有但是您从来不知道或没察觉的税务减免。
而更棒的是我们的收费是合理的，我们的收费是能扣除明年的可征税收入的。
6. 做更多善事
捐款给慈善事业不单单是一件好事，它同时也可以为您节省更多税务。当你捐款时，请索取官方收据并好好保存。这些捐款都可在申报所得税时作为税务减免。
我们要特别提醒您：您的捐款不是直接扣除您的税务。他是从可征税收入上扣除的，因此您只会减少部分税务。
4申请税务奖励
政府提供多样化的税务奖励协助公司降低税务支出。这些税务奖励在1967年公司法令下包括再投资津贴，批准服务计划，国际采购中心，区域分销中心，生物技术和批准生意等类别。除此之外，1986年推广投资法令也有如投资税务津贴，基础设施津贴及开拓者公司等的税务奖励。
5. 谘询税务顾问的建议
在大多数的情况下，雇佣税务专员或会计师不只是省下您的时间，这同时会协助您得到税务退款或是缴付更低的所得税。我们是其中一间与时并进的税务专家。我们可能会发现你能享有但是您从来不知道或没察觉的税务减免。
而更棒的是我们的收费是合理的，我们的收费是能扣除明年的可征税收入的。
6. 做更多善事
捐款给慈善事业不单单是一件好事，它同时也可以为您节省更多税务。当你捐款时，请索取官方收据并好好保存。这些捐款都可在申报所得税时作为税务减免。
我们要特别提醒您：您的捐款不是直接扣除您的税务。他是从可征税收入上扣除的，因此您只会减少部分税务。
7. 赚取免税收入
有一些收入是不需要缴交所得税的。赚取越多的免税收入能避免您的所得税和您的收入一样水涨船高。获得免税收入的方法包括存款在持牌银行，投资在债券，股票或是获得免税员工福利如育儿津贴。
8. 降低您的所得税率
公司或是有限合伙企业最高的税率是24%，如果您的个人所得税高过24%，那毫无疑问的让生意收入在公司或是有限合伙企业下征税会比较划算。
另外，如果您的个人税务小于24%，你也可以将生意收入以董事费，薪资等的方式转移到个人，那么您的税务也会降低。
Mar 18,2025