What is Taxation?
Taxation is known as a compulsory financial charge imposed on citizens by a governmental organization to fund government spending and various public expenditures.
What is the Purpose of Taxation?
Did you know that paying your taxes is known as a vivid duty? It is also a law, for most countries. But, what happens with the taxes you pay annually to the government? Well, taxes are collected to provide a form of revenue source to support the primary activities of the government. The money you pay goes to many places. It functions as a revenue for the services and income that supports the needs of the citizens such as public facilities, militaries and national parks. Tax money is also used in paying the salaries of government workers and helping to support common resources, such as policemen and firefighters that work to serve the government. Taxes also fund government programs that help the poor and the underprivileged in the country.
What are the Types of Taxes?
These are some types of direct and indirect taxes commonly faced by citizens of Malaysia!
Income Tax – Charged on individuals, company and other entities deriving income from businesses, employment, dividends, interests, rents and any other periodical payments
Sales Tax – A tax imposed on specific imported and locally manufactured goods. The tax rate ranges from 0-25% depending on the price of the goods.
Petrol Income Tax – Charged on businesses that generate income through petroleum operations
Service Tax – A tax imposed on certain goods and services provided in certain prescribed establishments. 5% is usually charged
Real Property Gains Tax – A capital gains tax imposed on the disposal of real property or shares of a property
Excise Duties – Levied on specific products manufactured in Malaysia. Some of the products include cigarettes, liquors and motor vehicles.
Stamp Duty – Administered to any transactions related to tenant agreement, purchase and transfer of property.
Customs Duties – Compromise of import and export duties that varies based on type of imported and exported goods.
What do You Learn in a Taxation Degree?
When you pursue a degree in taxation, you will cover various types of taxes including income, property, payroll and real estate tax. Depending on the course of your choice, you may also learn accounting with a specialisation in taxing.
Some of the subjects that you may undertake in your course includes:
- Financial Accounting
- Business Law
- Management Accounting Techniques
- Business Taxation
- Business Analysis
Skills Needed to Work In Taxation
- Organisation skills
To pursue a career in taxation, you need to be highly organised as you will be dealing with multiple clients, meet many deadlines whilst dealing with a lot of paperwork and documentation. The ability to multitask and effectively manage your workload is important to provide satisfactory work for your clients.You would need to figure out a strategy to stay organised in your daily tasks while producing the best quality work.
- Good with numbers
When working with taxes, your numeracy skills are definitely a top priority. Most of the work you do requires a meticulous and detail-oriented eye. You will work with intense financial records and ensure every number in them are accurate. You should also have the ability to quickly look at a document, analyse and determine if the facts and figures are right.
- Interpersonal communication
In most cases, you will work alongside colleagues and clients that have little to no knowledge and understanding about taxes. When you work to analyse and optimise financial records, you have to also explain your findings to colleagues and clients. Serving as a date interpreter, you should acquire good interpersonal communications skills to ensure smooth interactions within the workplace.
Career Pathways With A Taxation Degree
Upon graduation with a Taxation Degree, you may pursue various career choices such as:
- Tax Accountants
- Tax Advisor
- Tax Manager
- Tax Examiner
- Revenue Agents
- Tax Consultants
- Employment Tax Specialists
General Entry Requirement For A Taxation Degree in Malaysia
Min. 2 passes in any 2 subjects
Min. CGPA 2.33
Foundation in Science
Min. CGPA 2.5
Min. CGPA 2.5
*NOTE: A Credit in Mathematics at SPM level or its equivalent is required as a prerequisite.
Min. Band 4
Where to Study A Degree In Taxation in Malaysia
Asia Pacific University (APU)
The Asia Pacific University of Technology and Innovation is a private university in Malaysia. APU acquires an unique fusion of technology, innovation and creativity works effectively towards transforming students into highly competent, employable and future-proof professionals. Recently, they have been awarded Premier Digital Tech University status which gives them opportunities to collaborate with key industry players to fulfil the needs of their technology graduates.
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About the Author
Raveena Rakni Suresh Raj
Leo baby & psych major