Johor Bahru

๐Ÿ’ฐ

Tax Services

Sections

Types of Tax Services Available

  1. Individual Income Tax Services

    • Preparation and filing of personal income tax returns.
    • Tax planning and advice for expatriates and locals.
    • Assistance with tax relief claims and deductions.

  2. Corporate Tax Services

    • Corporate tax return preparation and filing.
    • Tax compliance and advisory services for businesses.
    • Assistance with tax incentives and exemptions.

  3. Goods and Services Tax (GST) Services

    • Registration for GST.
    • Filing of GST returns.
    • GST compliance and advisory services.

  4. Tax Audit and Investigation Services

    • Representation during tax audits.
    • Assistance with tax disputes and appeals.

  5. Estate and Inheritance Tax Services

    • Planning for estate taxes.
    • Filing of estate tax returns.

Associated Costs

  • Individual Tax Filing: RM 100 - RM 500, depending on the complexity of the return.
  • Corporate Tax Filing: RM 500 - RM 2,000, based on the size and complexity of the business.
  • GST Registration and Filing: RM 300 - RM 1,000, depending on the volume of transactions.
  • Tax Audit Representation: RM 1,000 - RM 5,000, depending on the scope of the audit.

Procedures Involved

  1. Registration:

    • Individuals and businesses must register with the Inland Revenue Board of Malaysia (LHDN) for tax purposes. This can be done online or at local LHDN offices.

  2. Filing Tax Returns:

    • Individuals: Tax returns must be filed annually by April 30 for the previous assessment year.
    • Corporations: Corporate tax returns are typically due within 7 months after the end of the financial year.

  3. Payment of Taxes:

    • Taxes can be paid online through the LHDN portal or at designated banks. Ensure payments are made before the due date to avoid penalties.

  4. Tax Audits:

    • If selected for an audit, you will be notified by LHDN. Prepare all relevant documentation and cooperate with the auditors.

Required Documentation

  • For Individual Tax Filers:

    • Identification documents (NRIC or passport).
    • Income statements (e.g., salary slips, rental income).
    • Receipts for tax relief claims (e.g., medical expenses, education fees).

  • For Corporate Tax Filers:

    • Business registration documents.
    • Financial statements (balance sheet, profit and loss statement).
    • Tax identification number (TIN).

Local Regulations and Considerations

  1. Tax Residency:

    • An individual is considered a tax resident if they stay in Malaysia for 183 days or more in a calendar year. Non-residents are taxed at a higher rate.

  2. Double Taxation Agreements (DTAs):

    • Malaysia has DTAs with several countries to prevent double taxation. Check if your home country has a DTA with Malaysia to benefit from reduced tax rates.

  3. Cultural Considerations:

    • Understanding local customs and practices can be beneficial. For instance, during the tax season, it is common for tax consultants to be busy, so itโ€™s advisable to book appointments in advance.

  4. Language:

    • While English is widely spoken, especially in business contexts, having a basic understanding of Malay can be helpful when dealing with local authorities.

  5. Local Tax Consultants:

    • It is advisable to engage a local tax consultant or firm familiar with the Malaysian tax system to ensure compliance and optimize tax liabilities.

Conclusion

Navigating the tax system in Johor Bahru requires understanding local regulations and procedures. Engaging professional tax services can simplify the process and ensure compliance with Malaysian tax laws. Always keep abreast of any changes in tax regulations and deadlines to avoid penalties. If you have further questions or need assistance, consider reaching out to local tax professionals or the LHDN office in Johor Bahru.