Two words when combined together shakes the very core of
every Malaysian i've known.
(i have yet to see people who are really excited to pay Taxes)
These past few weeks have been really hectic, preparing tax computations and filling in Tax forms of the clients in the firm i'm working (actually just an intern) in.
The challenging part is when they start to question the methods,
the formulas of how we got to the Tax Payable amount
Because it's their hard-earned money that is gonna fly away..just that easily.
Throughout the days of me computing the chargeable income and tax payables of several
i realized that Tax Planning is really REALLY useful
for those who wish to avoid tax LEGALLY.
There are many ways and reliefs offered in ordered to do so,
such as subscribing to Broadband, Buying sports equipments, invest in life insurance,
and there's even a way to increase your EPF employee contribution so that chargeable income won't be such a huge amount.
Though there are some pros and cons. At least you get relief right.
Cons in where Approved and Unapproved Donation is differentiated. There are still many organisations not registered with LHDN,Unapproved donations are disallowed expenses and is required to be added back in the Adjusted Business Income.
BUT Approved donations are allowed and may be deducted against the Aggregate Business Income!
See the disadvantage there?! People who are actually sincere in donating to the underprivileged are forced to think TWICE before donating.
Some reliefs need to be reviewed as the rate of living is increasing. I mean limited ONLY RM300 for Broadband subscription?? How much do we actually pay per year eh??
Therefore i believe that Malaysians should be aware of this, and practice good Tax Planning.
I'm still learning though, there are so many things for me to learn and now i'm searching for the perfect career for me.
Accounting and Auditing is really tiring. They don't kid when they say Accountants/Auditors work looong hours.
I've seen why it is called Professional..not just anybody can stand the challenges faced by these Professionals!