The less money you pay in taxes, the more you have to devote toward your financial goals. A big part of financial planning is tax planning, which can help you make the most of tax-advantaged savings opportunities and tax breaks, as well as help you manage your income and withdrawals to minimize the tax consequences.
About Taxation Planning
While Malaysia income tax laws and regulations impose many responsibilities on tax payers, there are also numerous reliefs and incentives available to reduce tax burden in Malaysia. As a tax payer and business owner, you often wish to maximize your business income, a proper income tax planning will help you in reducing your income tax payable.
Although the amount of tax savings may not be huge sometime, the long term savings would surely be worth the hassle. Tax payers should bear in mind that taxes payable can run into huge amounts, it can cost you even millions of ringgit sometimes. Balanced against that, the hassle of spending some time and a comparatively small amount of cash to engage a good tax expert does not seem a tough decision to make.
Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan.
Process of Tax Planning:
Tax planning is an exercise performed to meet your tax obligations in a systematic manner keeping in mind your current financial status. Further, it includes your larger financial plan after calculating your age, financial goals, risk appetite, and investment horizon.