In order to avoid paying extra business tax, you have to deduct the expenses incur from the business income that you have generated. Keep all your original and valid documents such as invoice/bill in order to get the deduction. Without keeping such documents, deduction of business expense is not allowed and you might have to end up paying extra taxes.
|Allowed expense deduction||(70,000)|
Tax rate @ 18% = RM 30,000 X 18% = RM 5,400
|Allowed expense deduction|
*Assuming lost of invoice of RM 10,000
Tax rate @ 18% = RM 40,000 X 18% = RM 7,200
Year Assessment 2017 – 2018:
|1||Company with paid up capital not more than RM2.5 million|
|1.1 On first RM 500,000||18%|
|1.2 Subsequent Balance||24%|
|2||Company with paid up capital more than RM2.5 million||24%|
Proposed (From YA2018 Onwards)
|Chargeable Income (RM)||%||Tax (RM)||Cumulative (RM)|
Submit Income Tax Return and make tax payment on time
Do maintain a good practice to file your income tax return and make tax payment on time to avoid unnecessary penalties. Avoiding the penalty is a way of saving your hard earn money.
10% of penalty which is increment from your tax payable is being charged if you are late to make the tax payment and there will be an additional 5% of penalty increment to the total balance of tax payable plus the 10% penalty stated above if payment is not made after 60 days from the date due.
Tax payable = RM 10,000
10% penalty (late payment less than 60 days) = RM 1,000
Additional 5% penalty (late payment more than 60 days) = (RM 10,000 + RM 1,000) X 5% = RM 550