Taxation And Planning For SMEs Companies

Companies have to be conversant with tax planning and management, specifically so since the Self-Assessment System demands that all Records and Returns have to be proper and need to comply with the requirements of the Income Tax Act.

Tax planning and management is an issue that is receiving close attention from the Inland Revenue Board and its impact on the companies as taxpayers, as it is now the responsibility of the taxpayer to derive the chargeable income and pay the resultant tax thereon.

Course Objectives:

• Understand the various types and classes of income relevant to SMEs.
• Identify and categorize expenses that impact the calculation of chargeable income.
• Explore available exemptions and incentives applicable to small and medium-sized enterprises.
• Gain knowledge about capital allowances and their significance in tax planning for SMEs.
• Learn how to use this acquired knowledge to determine the chargeable income for their respective companies.

Learning Outcomes:

• Understanding different sources of income, such as revenue, sales, interest, and dividends.
• Learning to categorize and account for various business expenses, including operating costs, depreciation, and interest payments.
• Exemptions and Incentives: Exploring tax exemptions and incentives available to SMEs, which can reduce tax liabilities.
• Understanding how capital allowances affect taxable income by accounting for depreciation and wear and tear of assets.
• Applying the knowledge gained to determine the chargeable income for SMEs, considering all relevant elements.

Methodology:

• Pre – Assessment
• Interactive lectures and presentations
• Group discussions and activities
• Case studies
• Post – Assessments

Target Audiences:

• Directors
• Accountants
• Tax Managers
• Executives

Course Outline:

• Module 1: Basis of Malaysian Company Taxation System
• Income Tax Act 1967
• Taxability of Receipts and Gains
• When is Income Taxable?
• When is Income is not Taxable?
• Module 2: Maximization of Tax Deduction of Expenses
• Allowable/Deductible Expenses
• General Deductions – S33
• Business Deductions – S34
• Special Deductions
• Module 3: Double Deduction of Expenses
• Expenditure Qualifying for Double Deductions
• Approved Training
• Advertising Expenditure on Malaysian Brands
• Promotion of Export Services Rules
• Any other area of consideration
• Module 4: Non-Deductible Deductions S39
• Minimize Non-Deductible Deductions
• Capital Expenditure versus Revenue Expenditure
• Entertainment Expenditure
• Interest Restriction
• Module 5: Capital Allowances and Charges on Plant & Machinery
• What is a Plant?
• Concept of Qualifying Expenditure
• Allowances Available
• Balancing Allowance & Charge
• Timing of Assets – Acquisition and Disposal
• Assets under Hire Purchase
• Assets under Leasing
• Treatment of Unabsorbed Capital Allowances
   
• Module 6: Industrial Building Allowances
• What is Industrial Building?
• Allowances Available
• Balancing Allowance & Charge
• Module 7: Company Taxation Illustration
• Adjusted Income
• Statutory Income
• Aggregate Income
• Total Income/Chargeable Income
• Module 8:
• Budget 2024
• Case Studies
• Questions and Answers