I Started a Business to Pay LESS Tax (Here's How)

Подписаться 66 тыс.

Просмотров 19 тыс.

50% 1

In this video, I will share with you the basics of income tax and how I started a business (sole proprietorship) to reduce my taxable income. If you have any side hustles or online business, you can set up a business entity to pay lesser tax too!
Part 2 of this series (Registering on SSM): • Video
⬇️Timestamps:
0:00 Introduction
0:35 Income Tax 101
2:22 Why I setup this business
4:38 Types of business entity (Sole Prop vs LLP vs Sdn Bhd)
6:48 Should you setup a business
A sole proprietorship is basically the simplest form of business ownership there is, and in Malaysia, it is governed by the Registration of Businesses Act 1956. It is the lowest cost option to starting a business, making it a popular option for many aspiring entrepreneurs who may not necessarily have the money to begin a private limited company (Sdn Bhd).
With a business, you can reduce your taxable income by incurring business expenses or claiming capital allowances (depreciation expenses) for the purchase of assets (more than RM 2,000). With that, you move to the lower tax bracket which will greatly reduce the overall tax payable for the year.
Do note that deductions cannot be more than the statutory income of your business!
🔴Types of Business Entities (by 3E Accounting Malaysia): www.3ecpa.com.my/incorporatio...
🔴More information on LHDN's website: www.hasil.gov.my/bt_goindex.ph...
_________
❗️These playlists/links could be helpful to you!❗️
✅Start Investing in the U.S. market now!👇🏻
• Investing in the US ma...
✅Full Interactive Brokers playlist👇🏻
• Interactive Brokers Guide
✅Beginner's Step-By-Step Playlist to Start Investing 👇🏻
• Beginner's Guide to In...
✅My StashAway playlist👇🏻
• Playlist
✅Link to my social accounts 👇🏻
Facebook: / zietinvests
Instagram: / ziet_invests
Twitter: / zietinvests
✅🎥All the gears that I use to make my RU-vid videos: kit.co/Ziet/youtube-gears
income tax malaysia
lhdn malaysia
e dafter lhdn
lembaga hasil dalam negeri malaysia
income tax for content creators
youtubers in malaysia
malaysian youtubers
income tax for youtubers
income tax for shopee sellers
income tax for malaysians
suruhanjaya syarikat malaysia
ssm sole proprietorship
ssm business
ssm ezbiz
ssm registration
ssm sole proprietor tax
ssm sole prop malaysia
how to pay less tax in malaysia
how to pay less tax 2021
how to pay less tax with a business
tax in malaysia for business
beginner's guide to income tax for online businesses
income tax for beginners
online business tax
business tax in malaysia
malaysia tax tips
income tax tips
limited liability partnership
sdn bhd
company
#incometax #lhdnmalaysia #soleproprietorship #soleprop #lhdn #malaysia #ziet #onlinebusiness #youtubers #ssm #syarikat #ssmezbiz #ezbiz #taxguide #taxtips #incometaxguide
_________
Disclaimer: None of the information in this video shall construe financial/tax/legal/accounting advice in any form, it is purely a sharing of my personal experience. In order to make the best decision that suits your own needs, you must conduct your own research and seek the advice of a licensed professional if necessary.

Хобби

Опубликовано:

2 июн 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 112

@ZietInvests 2 года назад

📌Can you tap the Like button for me, pretty please? ☺️ ❗️Part 2 of this series - How to Register SSM Online (and all the things you need to know): ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-vTEyOECWL2s.html ❗️Part 3 of this series - Accounting Basics for small businesses: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-R8LTWS9A6Mc.html Note: 1. You can only deduct business expenses (claim tax deductibles) up to a maximum of your statutory business income. For example, if your employment income is RM 60,000 and your business income is RM 10,000, then you can only deduct up to RM 10,000 for your business. 2. Capital Allowance (claimed on assets worth RM 2,000 and above such as a laptop) needs to be claimed according to the computation method shown on LHDN's website (involving Initial Allowance(IA) and Annual Allowance(AA)). Link: phl.hasil.gov.my/pdf/pdfam/B2010_Guidebook_2.pdf 3. If your income is received in your overseas account, for example in SGD, then you can convert them to MYR according to BNM's Foreign Exchange Rates for accounting purpose: www.bnm.gov.my/exchange-rates 4. When you have a business, it is your responsibility to prepare your annual accounts, in the form of a Balance Sheet and Income Statement. You will need these when you submit your Borang B each year on the LHDN website. I will address this in upcoming videos. (Thank you, Suresh Mohan!) 5. LLP also now can have one partner (compliance officer). (Thank you, Suresh Mohan!) 6. Note that the tax rate for Sdn Bhd/Company have been updated, check here for the latest rates: www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=2&bt_posi=5&bt_unit=1&bt_sequ=1

@neetubinwani7111 5 месяцев назад

Hi, the Part 2 of this series - How to Register SSM Online (and all the things you need to know) video has been removed. Would you be reloading it?

@brianiac888 2 года назад

Hmm I believe you can claim the fork as a tax deductible too! Great video!

@ZietInvests 2 года назад

Yes I believe I can too since it is technically considered a prop haha! 😂

@johnloo3873 2 года назад

😂😂😂

@michaelchiayin351 2 года назад

Thank man !! Great Video.. I been researching this for a while. Well explain !!!

@ZietInvests 2 года назад

Pleasure is all mine Michael! I have more in store so stay tuned!!🥰

@axilieaaxi4439 Год назад

Thank You Very Much!!! All your vids answers the questions I had ❤❤❤

@ZietInvests Год назад

Yayyyy 😍😍😍 all the best my friend!!

@DenisLee01 2 года назад

Always blown away by the editing level every single week and also the information, not gonna lie!

@ZietInvests 2 года назад

Haha thank you so much Denis, still experimenting new stuffs - so much to learn! 🥰

@luna52128 2 месяца назад

Thank you for your effot for explaining in so details! You are great!

@ZietInvests 2 месяца назад

omg thank you so much!! im so glad this video helped you

@kannanragupathi4651 2 года назад

Great, thanks for the Video Ziet 🙏

@ZietInvests 2 года назад

You're most welcome Kannan!🥰

@newadultben128 2 года назад

Thanks Ziet! Didn’t have much exposure on this before definitely useful for new adults like me 😂

@ZietInvests 2 года назад

Yassss this area is not very well covered - and seeing so many new side hustler like me and you popping up, I think it's time we give this topic a little bit more light just like how we opened the floodgate towards investing in the US market haha! 😝

@louielooyi 2 года назад

I have been procrastinating for so long to open a SSM business... So this episode is just an intro? Cant wait for the next one !!!! It sounds super important and useful! 🤓

@ZietInvests 2 года назад

Yup this is just intro, the next 2 uploads will be packed with useful content!😊

@pennyong8344 2 года назад

i make a point to watch your youtude once a week. keep up the good job, rest well, and good health

@ZietInvests 2 года назад

Woahhh im so humbled by that Penny, thank you so much🥰🥰🥰

@UrbanArtCentral Месяц назад

Love your signature fork microphone.

@UrbanArtCentral Месяц назад

Interesting to know that LLP pays lower tax rate than sole prop. Something worht considering for me for the next setup.

@reignstalk4376 2 года назад

Thanks for the info man

@ZietInvests 2 года назад

☺️

@propertystories 2 года назад

Don't understand why people can hit dislike on this video. Thanks Ziet for sharing your experience.

@ZietInvests 2 года назад

Hehe thanks a lot man, I have no issue with these haters (they are pretty punctual to dislike every week haha), though they make up ~1% of my Like/Dislike pool, pretty irrelevant 😊

@ZephyrinSkies 2 месяца назад

You're awesome, thanks for putting together such a noob-friendly resource. Some asshat reported the video you linked as the part 2 for "harassment and bullying" tho.

@leishmaniasis13 2 года назад

Hey! Love your videos. I recently just moved back from overseas and your video on setting up a sole prop really helped me with registering my own business. I got a question to ask - Do you know if we need to open a new tax file under sole prop with LHDN since there is no separation between the individual and the owner as a Sole Prop. I have an individual tax file already from a long time ago when i worked here once. Thanks again and look forward to hearing from you!

@ZietInvests 2 года назад

Hi Shawn, usually we can just fill in form B (for resident individual running a business) instead of form BE (for resident individual without a business), Form B usually comprises of 2 sections - employment income and business income, and they will aggregate at the bottom to form your final taxable income etc. My suggestion to you is to call LHDN (people do that all the time!) and clarify this as I might not be clear of the nuance of your status (since you just moved back) - they will have all the answers for you!

@leishmaniasis13 2 года назад

@@ZietInvests thanks Ziet! Appreciate the input. Look forward to more future videos. 👏👏👏

@SyLeowMy 2 года назад

Can’t wait for next episode

@ZietInvests 2 года назад

hehe, i'm editing it as we speak 🥰

@chingsiang 9 месяцев назад

Hi Ziet, I've just came across your videos and I find it to be super helpful to me as a sole prop (just registered last month). Just a question from me, on the payments and all right. Say if your invoice is being sent before the date that you registered as a sole prop, and the payment received after the register date, does the transaction itself taxable?

@haqrahim 2 года назад

Great content

@ZietInvests 2 года назад

Thank you Rahim!

@johnwong3873 10 месяцев назад

Hi Ziet. Will I be entitled to tax deductions if I first invest in capital expenditures before registering as sole prop? Or must I register as sole prop first & set up an entity bank account so that any online payments made for capital expenditure could be made under my entity's bank account in order to entitle for tax deduction?

@amitv2592 2 года назад

Sounds good 👌👌

@ZietInvests 2 года назад

Thank you very much!

@AndrewMordonPodcast 2 года назад

Smacked the like button

@ZietInvests 2 года назад

Thanks buddy!

@russisrunning Год назад

Great video Ziet!! Learn a lot from this video, aprreciate the good work! I have a question, if I am current a partner with a LLC company (online retail company), can I still register for sole prop (for my personal social media operation)?

@ZietInvests Год назад

Hi there, yes you can always do that!

@russisrunning Год назад

@@ZietInvests thanks for the info Ziet!

@benkohkh 2 года назад

Hi Ziet, for Sole Prop, if I buy a used asset (e.g: used tablet) from Carousell without official invoice, can still claim as "business expenses"?

@ZietInvests 2 года назад

Hi Ben, good question eh, I would be inclined to say no but it can also be a transfer of asset, though I have no experience with that before. Try checking with LHDN, or ask accounts like L&Co., they will have the answer for you😊

@chanhanwei3309 Год назад

Hi, your videos really solved lotsa of my questions. I have question, if i would like to set up a HR & payroll services business - doing it alone, do u think i should go for sole prop or? thanks!

@ZietInvests Год назад

Hi Han Wei, im not sure if i understand your question correctly, but from the looks of it your business is better done with at least LLP

@apamacam4838 2 года назад

First n liked !

@ZietInvests 2 года назад

Thank you so much! 🥇

@amadeuslow9898 Год назад

Hi thank you for your video! I invested in my business few years ago but it has been inactive since then. I actually started the operation this year and have registered a Sole Prop for it. Till now my revenue is low (

@ZietInvests Год назад

Hi Amadeus, as far as my knowledge goes, those should be treated as pre-development expenses therefore they are not tax deductible - do double check with an account yeah

@TheCYStudio 2 года назад

Hi Ziet, thank you so much for all these videos. Liked and Subbed. I have a question tho....If I work as a freelancer on upwork, and received payout on paypal, but have not withdrawed to my msian bank account. Should this be included in taxable income calculation? Been wondering for awhile, anyone knows?

@ZietInvests 2 года назад

Hi Chin, that is a gray area in my opinion, technically there is no need to declare that amount from upwork if you did not withdraw it to malaysia. For me, my income from RU-vid (US) and etc already exceed a certain amount of threshold which would trigger an audit, so it’s safer for me to declare it than hiding it (risk of being audited years down the road). You can however ask a qualified tax accountant for free (like 3E accounting or L&Co.) and see what do they think about it!

@alee9286 5 месяцев назад

Hi Ziet, I would like to check if I opened a side business and incurred loss during the year, can I offset my business loss against my employment income so that I pay lesser income tax as a whole?

@benfromlabuan 5 месяцев назад

Would like to know also

@rtheace 2 года назад

I wonder if its recommended to set up SSM if my gross income from my sales only between 900-2000 gross profit. 🤔 I'd been thinking long about this matter.

@ZietInvests 2 года назад

Monthly gross profit? Even if you are making loss, you need to declare/setup your business regardless as you are required by law to register for a business before you are allowed to operate any business in Malaysia, else you risk running into penalty. "Register the business not later than thirty (30) days from the date of commencement of business." "A person who carries on business without registering a business commits an offence under the ROBA 1956 and if found guilty be fined not exceeding RM50,000.00 or imprisonment for a term not exceeding two (2) years or both." Can read the guideline here: www.ssm.com.my/Pages/Register_Business_Company_LLP/Business/Business-Document/guidelines_for_registration_of_new_business_05062018.pdf

@jasminesaif183 2 года назад

Hi Ziet, how about gains (ie from our IBKR account, by the end of the tax year, our gains are 15%). Will we need to consider that in taxable income?

@ZietInvests 2 года назад

Those are considered foreign investment income, not considered taxable under the eyes of malaysian taxation😊 (Please double check with the relevant regulations yeah)

@jasonlai3888 2 года назад

@@ZietInvests hi ziet. is that we have to pay LHDN taxes if our IBKR account was registered under IBKR LLC (US) entity or IBKR SG (Singapore) entity? do we need to report this stock income inside borang BE?

@jasonlai3888 2 года назад

@@ZietInvests I also wondering is setting up a company in Labuan (which they call the tax haven in malaysia) will helps to further reducing the stock trading taxes....

@ZietInvests 2 года назад

@@jasonlai3888 Hi, capital gains no need, but dividend income if you take it back malaysia then it is taxable from 1 Jan 2022 onwards, not for this year, will talk about the new tax regulation in my upcoming video soon

@ZietInvests 2 года назад

@@jasonlai3888 i have never explored labuan stuffs before haha

@RaymondVuiHaurChee 6 месяцев назад

Which business bank account u suggest?

@kelvinchang8100 2 года назад

Hey Bro, Im employee & file EA form income tax annually.. I registered as Sole prop in SSM (small business), the profit declaration park in employment EA form ? or open new B form from LHDN?

@ZietInvests 2 года назад

Hi Kelvin, go for Borang B straight away. Your employment income should be under "Part A" while your business income should be parked under "Part B", both of them is under Borang B (instead of BE).

@ahafeezs Год назад

@@ZietInvests What if you have oversea's employment but WFH in Malaysia and open Sdn Bhd, is it still Borang B?

@khanswaren2959 2 года назад

great video zeit is that LLP is an enterprise

@ZietInvests 2 года назад

Hi Khans, I believe the enterprise you are referring to is Sole Prop. LLP is partnership that involves 2 or more partners, can read here for more info: foundingbird.com/my/blog/company-registration-type-in-malaysia

@azibibasri3471 2 года назад

Tq boss

@ZietInvests 2 года назад

Most welcome!🥰

@dannarief3399 2 года назад

Is the fork tax deductable or under business expenses? :p

@ZietInvests 2 года назад

HAHAHA, technically yes, it is one of my prop to make my video, that's how RU-vidrs in the US claim travel expense (by vlogging and posting videos of their travel), including business meals (as long as business discussion is involved), very very grey area indeed😂

@BlueSky-no1jv Год назад

Question once i got my ssm business permit i can sell product online and buying my goods in other place?

@ZietInvests Год назад

What do you mean "other place"? As long as you keep a record of all the transactions (domestic, international), why not?!

@BlueSky-no1jv Год назад

@@ZietInvests Like import beauty cosmetic overseas. once i have ssm already i can import beauty cosmetic overseas without problem?

@jasonong2231 2 года назад

What kind of business should I register for online business ? Thank

@ZietInvests 2 года назад

Hi Jason, you can refer the MSIC Code in the description box to find your business code, then just follow that as the name for your business will do

@ngjiayu1502 2 года назад

Hi Ziet, I want to ask is there any way to buy pink current stock in ibkr

@ngjiayu1502 2 года назад

Example tcehy

@ZietInvests 2 года назад

Yes you can buy pink (OTC) stock, but will need to meet the minimum eligibility to request for such trading permission, you can find it on their website or you can ask the customer support about it😊

@ngjiayu1502 2 года назад

Okay thanks

@ZietInvests 2 года назад

@@ngjiayu1502 most welcome😊

@sashidharanlokanathan8451 2 года назад

Excellent job Zeit. I was thinking about this topic where anyone can help me out the Tax guide finally here you came to save me again. Tq very much..Anyway, where is your Gold fork man?

@ZietInvests 2 года назад

Haha thank you so much Sashi - I do realise this is a topic that is not widely covered hence why I went through so much headache to figure it out by asking left and right (same situation when I started to invest in the US market - De Ja Vu haha!), so I thought why not share this because online businesses/side income is a fair popular them now and moving forward - stay tuned for more because I have more in store!! Also, regarding the golden fork...I'm switching between the silver & golden fork randomly hahaha!

@itsmegary3085 Год назад

Is it no point to open a sole pro if i didnt run any business? Since the tax rate are same with personal tax

@ZietInvests Год назад

Yup

@itsmegary3085 Год назад

@@ZietInvests thanks alot!

@mokh223 6 месяцев назад

What you think the possibility of you been sue by any company. Will the Limited Liability help?

@ZietInvests 6 месяцев назад

Sdn Bhd does offer limited liability protection, which means our personal assets are generally safe if our company get sued, though, this doesn't mean we are free from personal legal issues like defamation/etc..

@HomepreneurCoach 4 месяца назад

Malaysian RU-vidrs have to pay up to 30% US withholding tax, we still need to pay tax in Malaysia?

@ZietInvests 4 месяца назад

Apparently yeah, coz we do business here, need to declare income tax

@axelkee7718 2 года назад

I saw your page is running FB ads, would you mind doing a video on how to handle withholding tax? 🙏

@ZietInvests 2 года назад

Hey Axel, very very good question, to be honest it's also something I'm wondering also, for now I'm only treating them as marketing expense, haven't got a clue how to handle the WHT 😂

@CyrusC1234 2 года назад

Can we register a business to have additional claim for laptop and phone purchases, even we not yet have any client or income? Eg: people who just starting out own software solution gig, but no client yet.

@ZietInvests 2 года назад

Hi there, you can refer pinned comment for this, basically you can only deduct business expenses (including depreciation expenses) up to a maximum of your statutory income from business. So since you don't have business income, you cannot claim for your laptop/phone purchase. Do note that business income is separated from your personal employment income, not to be mixed together when it comes to business claims.

@teachermalar6296 Год назад

If earning per month RM4000,need to pay tax?

@ZietInvests Год назад

Depends on your income after EPF deduction, can refer this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-5wJEHtHArNo.html

@mming_my 2 года назад

Isn't it shd bhd pay 17%?

@ZietInvests 2 года назад

Ops you are right! I've referred to an older source 😂 sry for the mistake!

@aswinichandrasagaran1781 Год назад

How to pay tax if we earn like these? Example 1 Business 1 = 100k annual Business 2 = 100k annual Both taxable Example 2 Business 1 = 100k annual Business 2 = 20k annual Only 1 taxable

@ZietInvests Год назад

Hi there, your question is a bit vague, what are your business registered under? Sole Prop? Sdn Bhd?

@aswinichandrasagaran1781 Год назад

@@ZietInvests This is not my income. I just asked to clear my doubt but it's okay. I'm a digital artist and gonna register under the sole proprietor. Should anyone convert from sole proprietor to SDN BHD if they earn a high annual income without partner?