Wage earners tend to lose out when it comes to taxes

Easy system: File picture showing Internal Revenue Board officers assisting the tax payers to file in their e-filing in Penang. The maximum tax bracket for individuals is 26 and this figure hits those with more than RM100,000 in taxable income.

A friend came back fuming from his tax consultant’s office. He was charged an additional RM100,000 in taxes on the gains made from exercising his stock options.

Advice from his consultant came too late. He could have reduced the tax bill substantially had he exercised his stock options when the price was low. This is because the taxable gains from exercising stock options are based on the exercised price of the shares.