• To minimize an individual's income taxes as the higher the tax lower is the disposable income.
• The individual has to set a strategy to minimize tax payment.
• In Malaysia the tax system is administered by Inland Revenue Board (Lembaga Hasil Dalam Negeri) which responsible for assessing and collecting taxes from individuals and corporations once a year.
• The latest is self assessment system which an individual will fill in the figures in the tax form, calculate& determine the amount to be taxed.

Tax avoidance - One can apply strategies (legally) by getting the advice from the expert in tax ( tax consultant) to reduce tax liability.

Tax evasion - The illegal ways of reporting tax with the purpose of paying less tax example underreporting of income by not declaring other income such as investment and overstating the deductions/reliefs

Chargeable Income - Derived by deducting income of an individual from all sources with personal relief.

Aggregate Income - Total of Employment income, dividend, interest and discounts, rents, royalties and premium, pensions, annuities and other periodical payments & other gains or profits.

• Pensions received
• Gratuity
• Compensation for loss of employment
• Interest Income: from financial institutions, such as giving of up to RM100,000, from Fixed deposits (for conventional) of up to 12months, gain from deposit in Islamic Banks, Lembaga Tabung Haji/Bank Negara Malaysia.
• Dividends (from ASB, unit trust)

Made of Payment

• Selected banks using bank payment slips, internet banking, phone banking, ATM
• at the Lembaga Hasil Dalam Negeri (LHDNM) offices using cheque, money orders, bank drafts; or through FPX (Financial Process Exchange)
  

• Any non- payment after the due date will be an increase of 10% in the tax amount.