Sigma Wealth

Tax planning?

Are you taking full advantage of the tax laws so that you are not paying more than necessary?

Are there changes you could make in your business structure that would reduce your income taxes?

Do you have access to changes in tax law that affect you?

For many, income tax planning is as important as wealth accumulation. Proper planning will help ensure that your assets are not consumed paying taxes because of ineffective investment strategies, your generosity, or death. But with the myriad of tax laws, how can you make sure you're taking the steps necessary to minimize your income tax liability?

Hence, a good tax agent will help minimise your tax liabilities, maximise your after-tax investment returns, and protect your assets so that your love ones benefit from your hard work. Moreover, a tax agent keeps you informed of recent and proposed tax legislation that may have an impact on you or your business. Some of the tax services include:

Corporate and individual tax preparation and planning Estate and Gift tax planning Tax planning and forecasting Tax research and planning

Personal Income Tax planning

All individuals are liable to tax on income accrued in, derived from or remitted to Malaysia. However, a non-resident individual will be taxed only on income earned in Malaysia. The rate of tax depends on the individual's resident status, which is determined by the duration of his stay in the country as stipulated under Section 7 of the Income Tax Act 1967. Generally, an individual who is in Malaysia for at least 182 days in a calendar year is regarded as a tax resident. Effective from the year of assessment 2004, income remitted to Malaysia by a resident individual is exempted from tax.

Resident Individual

A resident individual is taxed on his chargeable income after deducting personal reliefs at a graduated rate from 0% to 27% effective 2009.

Resident Individual

The chargeable income of a resident individual is arrived at after making several deductions. These include:

personal reliefs for self RM8,000 (a further RM6,000 for that individual if he is a disabled person), spouse relief (if combined assessment RM3,000 unmarried children below 18 years of age RM1,000 each; children study full time in local university RM4,000 parents' medical expenses RM5,000; medical expenses on serious diseases including medical examinations for individual, spouse or child RM5,000; expenditure for purchase of basic support equipment for the individual, spouse, child or parent who is disabled RM5,000; cost incurred for the purchase of books, journals, magazines and other similar publications for the purposes of enhancing knowledge RM1000; contributions to the Employees Provident Fund (EPF), life insurance premiums RM6,000, insurance premiums for education or medical benefits RM3,000 disabled relief self RM6,000 disabled relief spouse RM3,500 disabled relief child(unmarried) RM5,000 computer relief RM3000 (once in 5 years) broadband relief RM500 per year efective 2010. An amount limited to a maximum of RM5,000 on fees expended by the individual for any course of study up to tertiary level for the purpose of acquiring technical, vocational, industrial, scientific or technological skills at institutions in Malaysia recognised by the Government is also allowed as a deduction. It is further extend to any discipline in Master or Doctorate courses in YA 2009. sports equipment relief of RM300