Tax Planning is Key to Maximizing Cash to Owner

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It is the time of year now when business owners need plan to minimize their overall tax leakages after 1 hard year’s working in business.

If a business owner leaves more in his business, there will be more business profits available to be taxed.

He can either move some of his profits away to his other businesses or to himself legitimately.

If he moves his profits to his other businesses, “transfer pricing” will kick in. This matter is sticky and tricky, and there are many ways of doing it right to avoid being the target of “transfer pricing audit” later.

If he moves some of his profits into his own pockets, this will attract personal income tax. It requires detail computations of his personal income tax brackets after his personal reliefs vs incremental tax savings of his corporate income tax after all tax claims and business deductions.

The best time of the year to do these moves will be around now to avoid year end rush and to ensure you can time the physical cash movement to be done before calendar year end as personal income is taxed on calendar year basis.

Optimizing your overall corporate and personal income taxes is an art. It requires precision planning and timely execution.

A careful year-end tax optimizing planning can really help save you lots of your hard earned monies which would otherwise be leaked to the tax authorities!

If you need help, feel free to contact us at :

(M) +65 90880669

(E) [email protected]


Written by Kelvin Loh