Kota Kinabalu

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Tax Services

Sections

Types of Tax Services Available

  1. Individual Tax Services:

    • Personal income tax filing
    • Tax planning and advisory
    • Tax return preparation

  2. Corporate Tax Services:

    • Corporate tax compliance
    • Tax advisory for businesses
    • Transfer pricing services

  3. Goods and Services Tax (GST):

    • GST registration and compliance
    • Filing GST returns

  4. Real Property Gains Tax (RPGT):

    • Advisory on property transactions
    • Filing RPGT returns

  5. Tax Audit Services:

    • Assistance during tax audits
    • Representation before the Inland Revenue Board (IRB)

  6. Tax Refund Services:

    • Assistance in claiming tax refunds
    • Filing appeals for denied refunds

Procedures for Filing Taxes

  1. Registration:

    • Individuals and businesses must register with the Inland Revenue Board of Malaysia (LHDN) to obtain a tax file number.

  2. Filing Tax Returns:

    • Individuals: File the income tax return (Form BE for residents, Form B for non-residents) by the deadline, usually by April 30 for individuals.
    • Corporations: File the corporate tax return (Form C) 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. Payment methods include bank transfers, credit cards, and cash.

  4. Documentation:

    • Maintain records of income, expenses, and any relevant documents (e.g., receipts, invoices) for at least 7 years.

Associated Costs

  • Tax Preparation Fees:

    • Individual tax preparation can range from RM 100 to RM 500, depending on the complexity of the return.
    • Corporate tax services may cost between RM 1,000 to RM 5,000 or more, depending on the size and complexity of the business.

  • Consultation Fees:

    • Tax advisory services typically charge hourly rates ranging from RM 150 to RM 500.

Local Regulations

  • Tax Residency:

    • An individual is considered a tax resident if they stay in Malaysia for 183 days or more in a calendar year.

  • Tax Rates:

    • Personal income tax rates range from 0% to 30%, depending on income brackets.
    • Corporate tax is generally set at 24%, with a lower rate of 17% for the first RM 600,000 of chargeable income for small and medium enterprises (SMEs).

  • Filing Deadlines:

    • Ensure to adhere to the deadlines set by LHDN to avoid penalties. Late filing incurs a penalty of 5% to 25% of the unpaid tax.

Specific Considerations

  1. For Residents:

    • Familiarize yourself with local tax laws and regulations, as they may differ from other regions in Malaysia.
    • Consider engaging a local tax consultant for personalized advice.

  2. For Visitors:

    • Non-residents are subject to different tax rates and regulations. Ensure you understand your tax obligations if you earn income during your stay.

  3. For Businesses:

    • Register for GST if your annual turnover exceeds RM 500,000.
    • Keep abreast of changes in tax laws that may affect your business operations.

  4. Cultural Considerations:

    • Building relationships with local tax professionals can be beneficial, as personal connections often play a significant role in business dealings in Malaysia.

Conclusion

Navigating tax services in Kota Kinabalu requires understanding local regulations, deadlines, and procedures. Whether you are an individual, a visitor, or a business owner, it is advisable to seek professional assistance to ensure compliance and optimize your tax situation. Engaging with local tax consultants can provide valuable insights and help you navigate the complexities of the Malaysian tax system effectively.