FIN333 : CHAPTER 3 TAX PLANNING

What are taxes primarily used for by governments?

• Funding public services

• Supporting business

• Reducing inflation

• Increasing personal savings

How do taxes affect disposable income?

• They increase it

• They have no impact

• They reduce it

• They double it

What is the impact of taxes on cash flow?

• They increase cash flow

• They have no impact

• They reduce cash flow

• They double cash flow

How do taxes influence investment returns?

• They increase returns

• They have no impact

• They reduce returns

• They double returns

How can individuals reduce their tax liability through financial decisions?

• By making random decisions

• By not considering taxes

• By making smart financial decisions

• By ignoring their financial situation

What is taxable income?

• Income that is not subject to tax

• Income from any source

• Income from investments

• Income subject to tax

What types of income are subject to progressive tax rates?

• Employment income

• Self employment income

• Investment income

• Other income

What is the tax rate for self-employment income for non-resident individuals?

• 15%

• 30%

• 10%

• 20%

What determines residence status for tax purposes in Malaysia?

• The number of relatives

• The duration of stay

• The age of individual

• The type of employment

What are the two levels of tax jurisdiction in Malaysia?

• Federal and local

• Federal and state

• State and municipal

• Regional and state