As 2025 approaches, it’s critical for Malaysian SMEs to focus on tax planning and compliance. Staying on top of tax obligations not only ensures smooth operations but also helps avoid penalties. Below are three key areas every business owner should pay attention to.
Year-End Tax Planning Checklist for SMEs in Malaysia
Before closing your books for the year, take time to review your finances and make the most of available tax reliefs. Here’s a quick checklist:
- Review financial statements: Ensure all income and expenses are accurately recorded.
- Claim available tax reliefs: Use tax deductions and capital allowances where eligible.
- Adjust CP204 estimates: If your income projections have changed, update your estimated tax payments.
- Manage dividend distributions: Plan payouts strategically to optimize tax positions.
- Check for qualifying capital expenditures: Don’t miss out on claiming capital allowances for machinery, equipment, or vehicles.
Proper planning before year-end can help reduce tax liabilities and improve cash flow.
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