Although the legislation applicable in Malaysia may differ in several aspects from the one applicable in other parts of the world, most of the regulations referring to corporate law are similar. It is important to know that Malaysia applies similar tax minimization procedure as imposed in other jurisdictions. Tax minimization refers to legal procedures through which local and foreign investors can reduce their tax burden. Our team of company incorporation representatives in Malaysia can provide an extensive presentation on the main procedures used to reduce the level of corporate taxation.
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Tax minimization – definition
An important aspect any investor should know about the tax minimization in Malaysia is that this procedure refers to a legal right of companies operating on this market to find methods, within the provisions of the law, which can reduce the taxes due.
The following video offers a short presentation on the tax minimization procedures available in Malaysia:
The tax minimization procedure takes into account tax planning. Such strategies can help businessmen retain a higher share of the profits, which otherwise would be transferred to the local authorities; our team of company formation agents in Malaysia can offer more details on the matter.
Tax minimization strategies in Malaysia
There are several ways that can help businessmen reduce the level of corporate taxes. However, when carrying business activities in Malaysia, any investor should first take into account the fact that his main objective is to increase the level of revenues and profits.
One of the ways in which taxes can be reduced is through operations referring to charitable donations. For example, the investor could offer shares to a charity organization (as long as the legal entity under which the company was registered provides the possibility to offer shares to the public). This type of donation is regulated by a different set of rules.
At the same time, it is important to know that the travel expenses incurred during a work-related activity are deductible.
Entrepreneurs from abroad who want to start a business in Malaysia can choose a limited liability company, the simplest and most accessible structure available. Only one shareholder is needed in this endeavor, as well as a minimum share capital of only 1 USD. As for the formalities, they can be supervised by our local agents, who can prepare the necessary documents. Once you have chosen a business name, you move on to the actual incorporation, with the preparation of the necessary documents.
Investors who are interested in receiving further information on the tax minimization procedures or want to set up a company in Malaysia can address to our team of company incorporation consultants in Malaysia.