You may wonder why some of the well-earning businesses were having owner(s) changed. This is mainly because the government policy, it could be; business owners with big earning will have a big cut on their profits for government tax. If you are one of the big earners, you tend to have more well-earning businesses mainly because the government would want to have a big cut of income taxation from you if you are one of the newly changed business owners or big earners.
Example:
Business I earns RM 400,000 with A, B, C and D as their owners.
Business II earns RM 1 million with E and F as their owners.
RM 500 thousand earning or profit will need to pay RM 200 thousand government tax; i.e. 40% of the taxation rate for this category of earning. E is earning and paying this much.
RM 501 thousand earning or profit will need to pay 50% of tax.
Through government policy, it could be; E is being appointed as Business I 's new owner to replace A as one of the owners. Now, E is earning RM 500 thousand from Business II + RM 100 thousand from Business I. He need to pay 50% of the taxation this year after he took over the businesses instead of 40% taxation rate last year.
Example:
Business I earns RM 400,000 with A, B, C and D as their owners.
Business II earns RM 1 million with E and F as their owners.
RM 500 thousand earning or profit will need to pay RM 200 thousand government tax; i.e. 40% of the taxation rate for this category of earning. E is earning and paying this much.
RM 501 thousand earning or profit will need to pay 50% of tax.
Through government policy, it could be; E is being appointed as Business I 's new owner to replace A as one of the owners. Now, E is earning RM 500 thousand from Business II + RM 100 thousand from Business I. He need to pay 50% of the taxation this year after he took over the businesses instead of 40% taxation rate last year.
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