Your Company's tax agent should've educated you on the CP204 sooner. The reason you are not required to pay monthly tax installment in the first year is because the govt is allowing you some time to figure out your business profitability to be used in your subsequent year tax estimation. Besides that, they also help to ease the cash flow of new startups. It may seem like you're paying double tax in a single year, but in actual, you're paying tax arrears (at no interest/penalty charged) plus monthly tax on your monthly estimated income. If you view it at this perspective, the government is actually doing you a favor in return. If you would've known sooner, you could've provided for specific provision for doubtful debts which is tax deductible in order to reduce your tax liability on non performing debtors, create a mock CP204 in the first year where instead of paying to LHDN, invest the "funds" in short term money market funds and your situation would've been much better off.
In future, it might be wiser to look at profit after interest and tax when making financial budgets. Also, you can revise your tax estimate lower after the initial cp204 to ease your cash flow at least for the first 6 months
This only strengthen my opinion that Malaysia actually has a lot of money. Remember, taxes are a country's source of income. However, we don't know how the money are actually used. Truthfully.
Hi Mr Money, I'm a tax consultant and would like to highlight a few points. Understand where you are coming from and like to alert potential or new businesses not to be caught off guard the content is very good but somewhat inaccurate and could be misleading. for the benefit of the readers. in context CP204 is the initial estimate which is subject to 85% ruling as highlighted in the video and you can revise the estimated figures in the 6th or 9th month of the financial year to a lower figure, but you have to bear in mind on the penalty for 30% difference when comparing it against your acrual final tax returns as mentioned in the video. with regard to cashflow planning, you are not paying Double tax and it is also not 100% accurate to comment that it is tax in advance as the tax instalments is started on the 2nd month of the financial year so for example for a December year end, you will be required to pay your first tax instalment by 15th of February, and in substance you would have already collected your first month's revenue or sales in that matter. Cheers and thanks for another great content ;)
It's wonderful to learn more about government aid/funding for businesses. Hopefully the channel can do more video on that in the future, and even on personal financial aid from government too.
Damn, I didn't know our government has these initiatives for people who wants to start their own business. Might look into it myself and see what problems I can solve
Bro more involved LA with with budget we closing to another budget 2023...... I don't like parliament shouting its lame but I still like gov micro support for business ......
Thank you for explaining about this. As auditor, based by my experience, alot of business owner did not aware about this. They even did not know about CP204 and about penalty regarding of 30% Varian of submition form C. Then struggle to pay the penalties on top of penalty. Business owner also need to carefully monitored they account. If they don't have enough supporting document, the tax agent will add back the expenses and this will increase your taxable income. If they wrongly capture transaction on wrongly year ended, and get tax audit, they also will get penalty. For penalty, as soon as you receive the letter, you must immediately pay it. If not, you will get penalty on top of penalty. Useless you negotiate with LHDN. Thank you for this video. Hopefully this video will consume by alot of business owner out there. Please make content about audit and SSM submit too. If you don't have audited report, business owner cannot send for taxation.
Government should pay this channel instead of Jabatan Penerangan. We miss a lot of opportunities since we dont even know such government aid/fund existed. Thank you Mr Money
Malaysia goverment sepatutnya lower kan tax sebagai Contoh dekat Singapore Tax rendah so sebab tula usahawan dekat sana berjaya dan flourish. Negara pun makmur. Malaysia should take Singapore as example
Yeah...spore has so much lower taxes and more incentives for small businesses. N with lots of ease financing products. Thats y many foreigner choose Spore for their biz start ups.
@@mcmltr no.goverment of malaysia is so damn rich. I think the truth is that they wanna us to go broke and stay in the matrik since we are clearly socialist democracy country.
All these initiatives are good and all, but i cant help but to wonder why cant the government collect taxes on actual sales at year end, rather than estimates. SMEs will not have to bear unnecessary interest charges by taking on loans just to pay taxes. The initiatives doesnt seem to tackle the real underlying issue here.
hi MrMoney/Peter, I totally understand where you are coming from and that you are trying to explain in a very layman's way, but it is not very correct to call it ‘double' tax. CP204 is tax estimate for the year [just like PCB (Potongan Cukai Bulanan) for an employee]. You are still paying tax for 1 year of assessment. However, you are right in that is it extra cash outflow that a business needs to consider as it can be quite substantial, especially if you had a good year preceding a terrible year. :)
Well, if I have enough cash reserved, I won't be taking loan in the first place. Hell, I won't even start the business and go straight into investor path. Anyway, thanks for making such good video.
This is the first time I heard about collecting ADVANCE taxes. I only heard about you can pay tour tax by installment. Is our nation coffer really emptied that the need to do this? Was this has been always like this of new policy? Are those loan NEP programmed(only some special people are qualified)?
It's so absurd that a company be required to pay tax as a percentage of projected future earnings? Keyword here is "future". How is the 85% figure even determined? Arbitrarily or logically?What is the rationale?
Without 85%, people would just choose to pay 0 taxes in the 1st to 9th period. As the govt knows that rakyat will eventually submit their real estimates at the end of Year of Assessment through CP 204 revisions, setting the 85% minimum on subsequent year estimates will help prevent tax revenue concentrated only in the last quarter of subsequent YAs. Keep in mind that income is generated over the entire year and in such manner tax shall be levied as well.
because the government has a very high deficit and debt while the income is low so they take money from malaysian chinese companies as you mentioned about the double tax and should i add more cukai makmur and i have doubt about whatever gov programs to help these companies to actually work or it is just wayang kulit only
wait so Malaysia place the tax on input rather than on profit ??? if you open your bank account on a foreign land and have the money cashed over there where Malaysia has no jurisdiction on that country whatsoever , do you still have to pay taxes ??
errr ya and not so ya. haha. This is right for the 1st 2 years . On the 3rd year, its ok already. Bcos by then, u will only pay installments, and pay the difference by end of financial year. If u make more, u pay the difference. If u make less, govt pays u back. The 1st 2 yrs is tough, very tough. But usually we dont do very well on 1st year, hence the tax will also not be at maximum. But i really salute u for being able to rake in 1million in 1st year. kudos to u
no funding for ppl in 30s kah? most of us graduate in our mid 20s and gained some working experience then only start to kick start our entrepreneurship journey. at least make it below 35 la. adoi
His notes is literally on his pad. It's better than having a minister that speak with imaginary number only to be fact checked that he either lie or woefully over/under value the number.
aiyaaa CP204 first 3 quarter u estimate low profit la for year 2022. Then u have a chance to amend CP204 in September. In the last amendment, u change to a more accurate estimate of profit. this way u have more cash flow. Ur accountant don't teach u this meh?
Whats the point of this stupid CP tax rule to begin with? Why not LHDN just wait the next year so we know the exact amount of money made instead of playing this silly estimation game that burdens the people?
This is stupid Why need to pay taxe that unknown profit future. Doesnt mean it will stay above 85%. This not encouraging bcome entrepreneurs in own business
@@TenHorizons An accountant who knows about tax that's can help you reduce your taxable income! I am not talking about tax evasions! Just submit your audit account to a good accountant he will guide how to save money! A bad one will make you pay extra tax instead!
@@ChowYewLoon No I mean how do you know if it's a good one, any boxes it needs to tick, maybe any reputable accounting firms like the big 4, what's your plan on getting a good accountant? Picking the big 4 sounds good to me but I'm not sure what they charge, probably a pretty penny? Do you have experience in this sort of stuff?
@@TenHorizons Aiya...I don't like explain how to do it online! If you have done some business or sales before you should learned it from those accountant. I learned it from my company accountant when I was a salesman!
mr money if u want more tax reduction tips, i can email u or message, because im doing public mutual that a investment option can help you invest money and get a alot of tax rebate too, and free insurance
![How To Flip Cars | FULL PROCESS [4]](http://i.ytimg.com/vi/6bue3zRv_xg/mqdefault.jpg)
Owning a business is not for the faint hearted. Just saying 🤷🏻♂
Mr Money as a non-bumiputera and non-youth which financial assistance did you qualify from SJPP?
@@ChoonzXx is just advertisement for Government
Your Company's tax agent should've educated you on the CP204 sooner. The reason you are not required to pay monthly tax installment in the first year is because the govt is allowing you some time to figure out your business profitability to be used in your subsequent year tax estimation. Besides that, they also help to ease the cash flow of new startups. It may seem like you're paying double tax in a single year, but in actual, you're paying tax arrears (at no interest/penalty charged) plus monthly tax on your monthly estimated income. If you view it at this perspective, the government is actually doing you a favor in return. If you would've known sooner, you could've provided for specific provision for doubtful debts which is tax deductible in order to reduce your tax liability on non performing debtors, create a mock CP204 in the first year where instead of paying to LHDN, invest the "funds" in short term money market funds and your situation would've been much better off.
In future, it might be wiser to look at profit after interest and tax when making financial budgets.
Also, you can revise your tax estimate lower after the initial cp204 to ease your cash flow at least for the first 6 months
This only strengthen my opinion that Malaysia actually has a lot of money. Remember, taxes are a country's source of income. However, we don't know how the money are actually used. Truthfully.
Used to buy mega yatch, lcs, jewelleries etc
And invisible combat ships =D
To the Sultans...maybe.
Hi Mr Money, I'm a tax consultant and would like to highlight a few points. Understand where you are coming from and like to alert potential or new businesses not to be caught off guard the content is very good but somewhat inaccurate and could be misleading.
for the benefit of the readers. in context CP204 is the initial estimate which is subject to 85% ruling as highlighted in the video and you can revise the estimated figures in the 6th or 9th month of the financial year to a lower figure, but you have to bear in mind on the penalty for 30% difference when comparing it against your acrual final tax returns as mentioned in the video.
with regard to cashflow planning, you are not paying Double tax and it is also not 100% accurate to comment that it is tax in advance as the tax instalments is started on the 2nd month of the financial year so for example for a December year end, you will be required to pay your first tax instalment by 15th of February, and in substance you would have already collected your first month's revenue or sales in that matter.
Cheers and thanks for another great content ;)
Thanks for highlighting these :)
This deserved a pin
It's wonderful to learn more about government aid/funding for businesses. Hopefully the channel can do more video on that in the future, and even on personal financial aid from government too.
Damn, I didn't know our government has these initiatives for people who wants to start their own business. Might look into it myself and see what problems I can solve
Yes man go ahead! Use it
Bro more involved LA with with budget we closing to another budget 2023...... I don't like parliament shouting its lame but I still like gov micro support for business ......
Thank you for explaining about this. As auditor, based by my experience, alot of business owner did not aware about this. They even did not know about CP204 and about penalty regarding of 30% Varian of submition form C. Then struggle to pay the penalties on top of penalty.
Business owner also need to carefully monitored they account. If they don't have enough supporting document, the tax agent will add back the expenses and this will increase your taxable income. If they wrongly capture transaction on wrongly year ended, and get tax audit, they also will get penalty.
For penalty, as soon as you receive the letter, you must immediately pay it. If not, you will get penalty on top of penalty. Useless you negotiate with LHDN.
Thank you for this video. Hopefully this video will consume by alot of business owner out there.
Please make content about audit and SSM submit too. If you don't have audited report, business owner cannot send for taxation.
It's sad...
damn it why u here
Government should pay this channel instead of Jabatan Penerangan. We miss a lot of opportunities since we dont even know such government aid/fund existed. Thank you Mr Money
Nice editing! Made the story telling even better 🔥👍
Just like artist or celebrity, it is always easy to start(a business). But not easy to maintain it.
they use their status for advantage, i see bs overall. but i respect some are thriving
next video, talk about starting business/startup in Malaysia vs singapore
Malaysia goverment sepatutnya lower kan tax sebagai Contoh dekat Singapore Tax rendah so sebab tula usahawan dekat sana berjaya dan flourish. Negara pun makmur. Malaysia should take Singapore as example
Yeah...spore has so much lower taxes and more incentives for small businesses. N with lots of ease financing products. Thats y many foreigner choose Spore for their biz start ups.
our government is very childish and greedy thats why that increase so much income tax
Government no money.. so cari dari pocket rakyat la.
@@mcmltr no.goverment of malaysia is so damn rich.
I think the truth is that they wanna us to go broke and stay in the matrik since we are clearly socialist democracy country.
For the first 5 years, the tax should stay the same for the business to have a better cash reserve.
Personal taxes are very high here! If I earn in HK and SG , their taxes are lower. So Malaysian pay heavy taxes and better be jobless or freelancer
All these initiatives are good and all, but i cant help but to wonder why cant the government collect taxes on actual sales at year end, rather than estimates. SMEs will not have to bear unnecessary interest charges by taking on loans just to pay taxes. The initiatives doesnt seem to tackle the real underlying issue here.
Thank you for the knowledge! 😊
i feel you bro. suffering the exact same ‘surprise’ this year. AND im getting married this December so yeah money is razor thin. u got this bro!
hi MrMoney/Peter, I totally understand where you are coming from and that you are trying to explain in a very layman's way, but it is not very correct to call it ‘double' tax. CP204 is tax estimate for the year [just like PCB (Potongan Cukai Bulanan) for an employee]. You are still paying tax for 1 year of assessment. However, you are right in that is it extra cash outflow that a business needs to consider as it can be quite substantial, especially if you had a good year preceding a terrible year. :)
yes you are right, its just an easier way explain.
What kind of bullshit tax rule is this, if a company do better than it expected it has to get fined.
You can amend the payable higher in the 6th or 9th month.
WHAT? HOW IS THIS JUSTIFIABLE??
Should open a company in Singapore. Tax is way more lower and transparent 😏
Singapore corporate tax rates is 15% or lower ?
Well, if I have enough cash reserved, I won't be taking loan in the first place. Hell, I won't even start the business and go straight into investor path. Anyway, thanks for making such good video.
Thanks for the expose
There's a point from the financial ministry. But still they can improve the tax implimentation for win-win situations between both parties.
This is the first time I heard about collecting ADVANCE taxes.
I only heard about you can pay tour tax by installment.
Is our nation coffer really emptied that the need to do this?
Was this has been always like this of new policy?
Are those loan NEP programmed(only some special people are qualified)?
Let's go 💲💲💲💲
Any link for SJPP? Hope the process are transparent
Sounds like daylight robbery to me
Loan from the bank may be temporary solution but the best would be to have cash reserve
From a Singaporean - this tax rule is absolute nonsense.
Ugh that person. Im clicking off 👎
wah can invite YB geng geng
does youtuber need to pay tax?
I'm paying around 12k every 2 month starting this year n this hurt... just received my cp500.( late ).
Tax is very painful. It's like for every RM100 u have to pay RM17+ ....
if you hired an accountant, and you still have to worry about such things? please, fire them.
very correct
i see why SG business friendly
It's so absurd that a company be required to pay tax as a percentage of projected future earnings? Keyword here is "future".
How is the 85% figure even determined? Arbitrarily or logically?What is the rationale?
The rationale is simply encouraging us to lie 😘
Without 85%, people would just choose to pay 0 taxes in the 1st to 9th period. As the govt knows that rakyat will eventually submit their real estimates at the end of Year of Assessment through CP 204 revisions, setting the 85% minimum on subsequent year estimates will help prevent tax revenue concentrated only in the last quarter of subsequent YAs. Keep in mind that income is generated over the entire year and in such manner tax shall be levied as well.
Changing the UA-cam title to include minister's name will spike your views.
your accountant should have known about this requirement. Must be for video impact!!!
because the government has a very high deficit and debt while the income is low so they take money from malaysian chinese companies as you mentioned about the double tax and should i add more cukai makmur and i have doubt about whatever gov programs to help these companies to actually work or it is just wayang kulit only
wait so Malaysia place the tax on input rather than on profit ??? if you open your bank account on a foreign land and have the money cashed over there where Malaysia has no jurisdiction on that country whatsoever , do you still have to pay taxes ??
errr ya and not so ya. haha. This is right for the 1st 2 years . On the 3rd year, its ok already. Bcos by then, u will only pay installments, and pay the difference by end of financial year. If u make more, u pay the difference. If u make less, govt pays u back. The 1st 2 yrs is tough, very tough. But usually we dont do very well on 1st year, hence the tax will also not be at maximum. But i really salute u for being able to rake in 1million in 1st year. kudos to u
No wonder the unicorns head off top Singapore. I'd do the same.
no funding for ppl in 30s kah? most of us graduate in our mid 20s and gained some working experience then only start to kick start our entrepreneurship journey. at least make it below 35 la. adoi
The minister needs to look at his notes when speaking, he doesn't seem too good at his job.
His notes is literally on his pad.
It's better than having a minister that speak with imaginary number only to be fact checked that he either lie or woefully over/under value the number.
The minister was a former CEO of CIMB Bank. He knows the matter well
Get a biz loan to pay tax! Does it make sense and why is the govt need the biz to pay tax in advance?
gosh... you are not paying double tax... you got a free ride on Year 0 of the formation of your firm.
Money come first...claim later...
Nice video, but am I the only one who felt that the video for the interviewing part looks over exposed? or maybe it's just my eyes got problem
It's just prepaid tax amount and you will get tax refund next year if your company actual income is less than what you estimated .
Assuming you can survive the year and assuming the government will pay you on time
SJPP - I will dig it up..
aiyaaa CP204 first 3 quarter u estimate low profit la for year 2022. Then u have a chance to amend CP204 in September. In the last amendment, u change to a more accurate estimate of profit. this way u have more cash flow. Ur accountant don't teach u this meh?
Today i learnt that Mr Money TV is very profitable so need to pay a lot of taxes
... and who is this Mrs Geraldine Lane ?
Whats the point of this stupid CP tax rule to begin with? Why not LHDN just wait the next year so we know the exact amount of money made instead of playing this silly estimation game that burdens the people?
👍
So it didn't went broke. And not even close. Clickbait...
Apeni ??? Got surprised
Cb la the you know who.
if you want to be next steve job then need to move out to other country like uae dubai.
Cuz of LUNA I guess lol
Haha no
Income estimation is the mother of all evil!! Next time ask those tax leeches to consult a bomoh to read the future through bamboo branches...
Crazy move by gggooovvv
This is stupid
Why need to pay taxe that unknown profit future. Doesnt mean it will stay above 85%. This not encouraging bcome entrepreneurs in own business
so drama. why not say u only want 5k profit then only liable for 1700 tax? dare to curse own business or not?
I think you never do business before! Get a good reliable accountant not just any accountant!
Got advice on how to get reliable accountant?
@@TenHorizons An accountant who knows about tax that's can help you reduce your taxable income! I am not talking about tax evasions! Just submit your audit account to a good accountant he will guide how to save money! A bad one will make you pay extra tax instead!
@@ChowYewLoon No I mean how do you know if it's a good one, any boxes it needs to tick, maybe any reputable accounting firms like the big 4, what's your plan on getting a good accountant? Picking the big 4 sounds good to me but I'm not sure what they charge, probably a pretty penny? Do you have experience in this sort of stuff?
@@TenHorizons Aiya...I don't like explain how to do it online! If you have done some business or sales before you should learned it from those accountant. I learned it from my company accountant when I was a salesman!
Malaysia law is horrible
Hahahahah THE UNBRIDLE CURSE OF PROGRESSIVE TAX
5:28 ---> are you a youth? laughs
I feel like a lot of dislikes button here
Declare loss haha
3rd
5th uwu
4th...haha
483rd
mr money if u want more tax reduction tips, i can email u or message, because im doing public mutual that a investment option can help you invest money and get a alot of tax rebate too, and free insurance