Tax Planning Services in Malaysia

Economise your taxes in the long term

3 Steps to Start Economise Your Tax

Upon engaging us, we’ll issue you a quotation, which, if you agree with it, you must sign and return to us. Only then, we’ll commence the process.

In general, the process can be broken down into the following steps:

  1. study
  2. proposal
  3. implementation

Step 1: Study

We begin by studying your company’s business in totality. You’ll need to make your company’s records, accounting or otherwise, available for our review. After gathering all relevant facts, we’ll analyse the data in order to understand how your company’s business affects its tax obligations.

Step 2: Proposal

After analysing the data, we’ll devise a plan on how your company may economise on its tax obligations using legal and authority-approved means such as tax reliefs, tax grants, tax incentives, and corporate restructuring. The choice to implement our proposed solution rest with you.

Step 3: Implementation

If you decide to apply our solution, we could help with the implementation and monitoring in order to precisely gauge your company’s tax obligations as it carries out the proposed solutions. You’ll have the choice of either engaging our services at this stage or not.

How is pricing determined for this service?

Every project is unique, and therefore the fee structures and amounts are decided on a case-to-case basis. However, in general, following the mentioned steps above, the fee can be broken into the following general categories:

  • fees for study of your company and the proposal of viable solution(s); and
  • periodical retainer fee.

In addition, any out-of-pocket expenses that our assigned tax advisor incurred in performing his or her duties, in relation to your company, will be claimed in our bills to you for reimbursement. Our fees are subject to SST. Lastly, amounts are payable as and when bills or invoices are presented to you.

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Frequently Asked Questions

What is the difference between tax planning and tax avoidance?

Tax planning is strategising a way of meeting your tax obligation that is legal and most beneficial to both you and tax authorities. It involves using means that are approved by tax authorities, which may include applying for all applicable tax reliefs, and restructuring your business, in order to maximise tax efficiency.

Tax avoidance is avoiding your tax via legal means. The difference between tax avoidance and tax planning is that both the act of avoiding tax and the legal means used to do so are not approved by tax authorities. Hence, even if it’s legal, tax authorities do enforce regulations to deter tax avoidance.

In conclusion, tax planning is the way to help you economise on your tax savings, and we, Cheng & Co, are happy to help you with it. Tax avoidance is also legal but a disapproved practice. Hence, we neither support nor entertain requests for help in tax avoidance.

What other tax planning services do you provide?

– company tax planning (including re-structuring, group relief, group credit set off);
– establishing your company’s tax positions to claim tax incentives;
– planning expatriate remuneration packages for foreign employees;
– proposing tax-efficient employment packages for your company;
– help out in international tax planning;
– planning for investment tax allowance as well as re-investment allowance;
– planning for company allowances (including export allowance, double deduction, etc.);
– withholding tax planning;
– real property gain tax (RPGT) planning;
– indirect tax planning; and
– providing reminders of deadlines.

Why should my company outsource tax planning services?

We acknowledge that you’re within your rights to do your own taxes, that there isn’t anything wrong with it. Nevertheless, effective or productive tax work requires time, knowledge, skills, and a rapport with tax authorities. It’s possible for anyone in your company to have all of the mentioned.

However, if you don’t, it’s much more prudent for you to outsource the work to qualified, experienced tax professionals. Licensed tax agents have the knowledge, skills, and authority to help you resolve your tax issues, and speak to tax authorities on your behalf. It’s possible to hire one full-time on your staff. Since tax is an annual obligation and isn’t likely a core activity of your business, having an in-house tax advisor may not be cost effective in long run.

In conclusion, outsourcing your tax planning ensures that you get the best tax planning service at managed cost, and, thus, free up your time to focus on your core business activities.

Why should we choose you?

We, Cheng & Co Tax Services, provides the best tax services at affordable prices. Furthermore, we have a strong team of tax advisors experienced in tax planning, with expert knowledge in Malaysian taxation. In addition, we’re part of Cheng & Co Group, a multifield corporate service consultancy, with consultants not just in taxation, but also in other fields such as accounting, auditing, strategy, and corporate secretarial service. Therefore, we go where the solution is. If your tax problem extends beyond taxation, we have colleagues from other teams we could include in order to resolve your issue, and the best part is that you won’t need to hire and pay them separately.

What are some of the most well-known Acts of Parliament related to taxation in Malaysia?

– Income Tax Act 1967;
– Real Property Gains Tax Act 1976;
– Promotion of Investments Act 1986;
– Petroleum (Income Tax) Act 1967;
– Stamp Act 1949; and
– Labuan Business Activity Tax Act 1990.

What tax incentives can I apply for?

Under the Promotions of Investments Act 1986, there are several types of tax incentives available for companies such as yours in Malaysia, and they are as follows:

– Pioneer Status;
– Investment Tax Allowance;
– Infrastructure Allowance;
– Industrial Adjustment Allowance (IAA); and
– Double Deduction For Promotion Of Exports.

Each tax incentive carries its own set of conditions that any applicant must abide by in order to be granted the use of such facility.

Does your advisory service extend to tax deduction for donations to charities?

Indeed we do advise our client that donations to recognised charities are valid for tax deductions. As part of our services, upon request, we could help you find the most suitable charities for you