With 2019 fast approaching, a huge problem everyone will be worried about is tax season. Filing your taxes is hard enough but can you imagine doing it for a whole company?
Filing taxes can be a pain but there are a few things you can avoid doing to ensure that you don’t get stuck with no way out during the tax filing season. Here are the top 3 mistakes we feel all companies should never make and avoid during tax season.
Mistake 1 : Income Overlooking
Since taxes are usually hated by everyone, it would be left to the last possible moment before being worked on. We all know that if you procrastinate, this will sometimes result in the fact that you might overlook some things. You would not want to overlook the amount of income you made.
Overlooking income might be one of the biggest mistakes you can make when it comes to your taxes. It is understandable because even if you have a small business or a multi-national company, sometimes you can’t figure out exactly where all the money is coming from.
In addition to that, with the rise of e-commerce and the internet, you might be earning money from various different sources. Some people might pay you by cash, credit card, PayPal or even in bitcoin! So you need to make sure that you are watching all the entry points in which you can earn income from.
Mistake 2 : Wrongly Reporting Items
This is another big mistake a lot of people make. Taxes are complicated, we all know that. There are so many different ways you can get tax reliefs. But there are also a lot of things you will get taxed on.
Especially with the political climate here in Malaysia the past year, filing your taxes will prove to be a hassle. For example, for the first half of the year, we had GST and now we have SST. Some of the things that were taxed before aren’t taxed now.
This will cause confusion on top of the already confusing system of taxes. Always make sure that you are keeping yourself up to date. Ensure that your team members also know what the latest news are and make sure that they know what’s going on at all times.
Mistake 3 : Not Paying On Time
In Malaysia, we are never on time. It is funny when it’s meeting your friends at a restaurant. However, the Malaysian government will not take the lateness very well. If you are late to paying your taxes, you might be fined. Fines will increase the amount of money you will need to pay overall.
The Inland Revenue Board usually charges a 10% increment on the tax payable for late filing and additional 5% on the balance if the payment is not made after 60 days from the final date.
The law generally does not allow a waiver of interest charges. However, the IRB may consider a reduction of these penalties if you can show a reasonable cause for being late.
So, make sure that you avoid all these little mistakes that could cause you a lot of money in the long run.
SSM Malaysia has just released a new reporting tool called the MBRS tool that will help you report your annual returns and a whole lot more. It will soon become a mandatory tool that must be used by every registered business.
To ensure that your team is ready for this amazing upgrade, please make sure that they attend these workshops to get certified today. All the necessary data about using and maximising the Malaysian Business Reporting System are right at your fingertips. Choose the right training provider and get exclusive MBRS tutoring.