With a more people-centric government that no longer favours the upper echelon as in yesteryear, Malaysia's economic and financial landscape is undergoing a major paradigm shift to more equitable wealth distribution. The signals that are coming out today are that, if you are well-to-do, you are being targeted in the cross-hairs of the government.
Going forward, one can expect the government to refine the taxation "nets" to pursue those with deeper pockets. Nothing unusual here as countries with broader-based policies have seen it fit and proper to tax those with greater means to alleviate the rest of society. So what implication does it have for us as individuals? Earlier wealth distribution and divesting oneself of direct interest in assets to reduce your chargeable tax footprint is a strategy that can be applied to reduce and minimise the tax impact.
Trust is a legalised structure that income / asset-rich individuals often resort to help them better manage the negative aspects of aggressive tax regimes for preserving and protecting their estates. For more information on how trust can benefit you and your business, contact us for a free consultation at this link or via Whatsapp.
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