B4 COMPUTATION OF CHARGEABLE

INCOME
Gross Income
Less: Allowable expenses
Less: Double deduction of expenses
Less: Special deductions [S. 34, S. 34A, S. 34B, S. 34C and S. 34D of the
Income Tax Act 1967 (ITA 1967)]
Adjusted Income
Add: Balancing charges
Less: Capital allowances and balancing allowances (up to adjusted income,
excess to be carried forward except for listed investment holding
companies)
Statutory Income
Less: Exemption of income for pioneer companies / investment tax allowance
Less: Reinvestment allowance
Less: Previous years’ business losses (not applicable for listed investment
holding companies)
Add: Statutory income made up of franked dividends (prior to Y/A 2008)
Add: Statutory income from other sources
Add: Recoveries of abortive prospecting expenditure
Aggregate Income
Less: Current year business losses
Less: Prospecting expenditure
Less: Pre-operational business expenditure (Sch 4B of the ITA 1967)
Less: Proportion of permitted expenses for investment holding companies (Y/A
1993 onwards – S. 60F, ITA 1967) except listed investment holding
companies (Y/A 2006 onwards – S. 60FA)
Less: Trust annuity (S. 63(5), ITA 1967)
Less: Approved donations [S. 44(6), S. 44(6A), S. 44(8), S. 44(9), S. 44(10),
S. 44(11), S. 44(11B) and S. 44(11C), ITA 1967]
Less: Zakat business [S. 44(11A)]
Less: Group relief – Current year adjusted loss transferred from a “surrendering
company” (Y/A 2000 to Y/A 2005 – Sch 4C, ITA 1967) (Y/A 2006 onwards
– S. 44A, ITA 1967)
Less: Carry-back losses – Immediately preceding and not exceeding
RM100,000 (Y/A 2009 and Y/A 2010 – S. 44B, ITA 1967)
Total Income
Add: Statutory income made up of franked dividends deemed as total income
(Y/A 2008 to Y/A 2013)
Less: Personal reliefs for resident individuals
Chargeable Income

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