TAXATION on LEARNING OUTCOMES omen 160 WHY THIS TOPICIS IMPORTANT -vo——onu—ennee ene 60 INTRODUCTION someone neni 6D 2 TARATION POLICY nee nnne nnn - 160 1 HISTORY OP NCOMETAXPOUCE MAAS emo 160 612 heousraxroe musts MARL Ts, 167 S513 | QuaurN AND NOR QUMUFYNG POLES —s GLA eran A CATAL CASA AO caRPoRTION ITV FOR LIFE ASSURANCE PREMIUM RELIEF eames TE 62 EUG {63 GUIDELINES BY INLAND REVENUE BOARD OF MALAYSIA e-em an FURTHER READING geome eink [REVIEW QUESTIONS AND ANSWERS. eo 178 TUTORIAL QUESTION(5) eee 159Learning outcomes LEARNING OUTCOMES ‘After completing this topic you shouldbe able to + Appreciete why income taxes are needed by the country and whe pays income taxes ‘+ Boploin individual income tx computation ‘+ Identify which potces ae eligible income tax reli under exiting inland Revenue Board guidelines ‘+ Bsplain cecircunstances in which income taxis payable on fe poly proceeds (WAY THIS TOPIC IS IMPORTANT ‘The purchase of life assurance cover is @ Mnancla decision and, consequenty, income ta considerations ean Influence the decision to purchase life assurance pllls. The topic is important tw polly owners and the insurer shouldbe aware ofthe topic 0 that they can advise their cients con the ex benefits of buying insurance, INTRODUCTION In order to encourage savings and help Malaysians to invest for thelr future expenses, be i for ‘medical or children's’ education, the Malayslan government supports the purchase of li education and medical insurance bythe public. This is mastly done withthe Implementation of tax ‘the mon-tsabity Of Insurance PrOGeEGS. The premium is allowable for tax relief wien the allowed insurance products are on the individual if, onthe life ‘ofthe spouse or on te joint lives of the individual and his/her spouse. Before we mave on to have Insurance can benefit taxpayers, et us examine th nature of income tax fr individuals n Malaysia and how tis computed ‘Conduct research and find the relevent Act of Parlamené hat governs insurance premiums tax rely in Malaysia. Which sections canbe found in? 61 TAXATION POLICY G11 HISTORY OF INCOME TAX POLICY IN MALAYSIA ‘Taxation Is vital component ofthe government machinery and isa major source of funds forthe ‘country’s operational and development expenses. Taxes imposed by the government are generally Aivided into two types: dee and indrecttaxes; Malaysia, as with most developing counties relied heavily on indirect taxes® such a8 excise duties, import tax, and export duties prior to independence and inthe erly years of nationhood. "= Kasipla, Jeyapalan. A Paci Guide to Mayen Taxation Curent Yeor Assessment Kala Lumpur Meceawil 200. rin 160‘TAXATION ‘Taxation Policy In 1948, the Ineo Ta Oran BAF marked the beginning ofa new era of taxation in Malaysia snipe een te cay or en nar. By 198, sae face ‘of S1.6% surpassed that of indirect taxes and continued to grow from there. The government ‘collected RM27.2 bilion indirect taxes in 1999 and this has continued to grow to an estimate of RM136 billon in 2015. OF the estimated RMI36 bili, an estimated RMI27 bilion are income ‘taxes, out of which, RMZ6S bilin came from individual income tax. Direct taxes especially income taxes remain the mainstay of government income until today. However, with the implementation ofthe Goods & Services Tax, che governments moving towards a broadet-based tx regime and indirect taxes might start o increase their contribution. ‘in Pendant Tes 125235 na0e Peresrnge/dis 26 26553 Popngi a nan Wiling ad tere 2535 Datars Psat Duty 1 7 PGT /Rel Proper in Tat = o7 (URAL TAR LANCSUNG/INDIRECT TAXES 2 ng Dato impr stew 2502 23 la jal/Sles Tax 10906 2034 Cala burangm an pertrisan/ Goode anders - a0 fri Cao Tax Revenue. 770 sere ‘Source Pal on Econom Dta” My of fiance Malas 7a ‘Canducta search or information on government tax receipts around the world. ist those countries ‘with a higher percenage of direct axes compared ndrect taxes. Ae ther economic and socio: ‘economic circumstances similar to Malaya? Discuss. Es 612 INCOME TAX FOR INDIVIDUALS IN MALAYSIA “The income Tox/ACE'A967 and sts voluminous amendments govern income tax collections in Malaysia and ie decrees that subject to and in accordance with this Act, a tax to be known a hal be charged foreach year of assessment upon the income of any person accruing In or derived ffom Malaysia or received in Malaysia from outside Malaysia. Income tax is administered and collected by the Inland Revenue Board of Malaysia, which was established under the Ilond Revenue Boor of Malaysia Ac 1995. 161Income tx in Malaysia Berritorials which means that tax is imposed onv@nlincome that has 2 ans Sgh 4Teo 2006) adh wheres seriou of ony ‘taxable in Malaysia ifthe income i remited into Malaysia and only in the hands of persons who are residents in Malaysia. However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia s exempted from tax. Hence, an individual, who Isa |s tHblsonlyomneams;acersnglin oF derived from Malaysia. Therefore, before we discuss the issue of income tax computation and tx elie further, iis important to define who Isa resident in Malaysia for tax purposes WHO IS A’RESIDENT? ‘The Income Tax Act 1967 categories an Individual ether as a resident or nonresident and it depends not on the citizenship but on the individual's physlal presence in Malaysia. The determination of the residential status of an individual for tax purposes is based on simple ‘quantitative measures, Section 7 ofthe Income Tax Act 1967 defines a Fsidentin Malaysia for tax purposes ifthe person s (tax year) fora period or periods amounting [iamn Tax resident determination ‘Mr: Euan Hunt fom England was in Malaysia to condicta research projet nthe Viability of ‘esting up an advanced Biochemistry Plan in Malays, Hisperiod of tay in Malaysia wasas follows: Period of stay in Malaysia: 11.3:2014- 3092014 © Number of days: 208 “The situation s summarised as follows: ‘England [ Malaysia [England ) | 204 | 92 ‘Therefore Mr Hut considered resident in Malaysia for tx purpose forthe bass year forthe sear of assessment 2014 because he was present in Malas for 214 days which more han 182 daysin the year 2014, Not: or more tormaton a cesienia su fr tox arose pos so Iland Revenue Board of Malaysia’ “Reoce Sear al Pb ling Ne 6201 14 person isin Malaysian tha bass year fora period of less than one hundred and eighty two days and that period is linked by or to another period of one hundred and eighty two or more consecutive days physleal presence in Malaysia in the basis year for the year of assessment fmmediately preceding that particular year of assessment or in that basis year for the year of assessment immediately following that particular year of assessment then this individual Is also ‘considered apa resident Singh, Veerinderjest, and Teoh Hoon. Ke. Melson Master Tax Guide 2005 28rd ed. Singapore: CCH Asa ‘re Limied 2008 Pan 162Taxation Poly ‘The resdential tats provision is tated in section 7of the Income tax Act 1967: —— 7.(1) For the purposes of this Act, an indvldval resident in Malaysia for the base yar for e particular yer of assessment if— (0) he is in Maysia in tho basis year fora period or periods amounting in alltoone hundred and eighty two days or more; (2) he sin Masia in tho asi year fora period of ls han one hundred tad eight-twe days ond that period i linked by oF to another period of ‘one hundred and eighty-wo or mare consecutive das (hereinafter ‘ferred ton this paragraph as such period) throughout whic he In Malaysia in the boss year forthe year of asessment immediately receding tha particular year of assessment orn chat bois year forthe “year ofassesstentinmadtatel fllowing that parieula yor of ‘assessment Provided that any temporary absonce from Maleysio— (@ connected with his service in Malaysia and owing to service matters or tending conferences or seminars or study abroad: W oing to l-hecth involving himselfar a member of hs immediate family; and (i) in espectof socal ists not exceeding fourten deysin the aggregate, ‘shal be cake form par of such period or thet period asthe case may fhe i in Malaysia immediately prior to and afer tha temporary absence (6) hein Malaysian hot boss year for a period or periods amounting in alto ninety days or more having been with espect to each ofany three of the bass years forthe four years of assessment immediately preceding that particular year of assessment either— {0 resident in Malaysia within he meaning of thls Act forte basis arin (question; oF 0S28FM Page 29 Thursday Apri 62006 12:07 PM 30 Laws of ‘Malaysia ACT 53 (00 n Mays for aperodor periods amounting in al to ninety days or ‘more inthe basis yeor in question; oF (be ts residentin Maleyia within the meaning ofthis Act forthe basis _year forthe yar of esesent following cat pardcular year of ‘assessment having been so resident for each ofthe basi years forthe three ‘years of assessment immediately preceding thet particular year of 163TAXATION Tasation Policy (A) Bor the purposes of subsection (1), an indvdual shal be deemed to be Jn Malaysia fora day ihe is presen in Malaysia for par ofthat day and in ascertaining the pertod for which he sin Malaysia during any year, any ‘ay (within poragraphs (a) and (c) forwhich he sin Molysia shal be taken into account whethor or no that day forms partofa continuous period of days during which he in Malaysia. INCOME TAX FOR INDIVIDUALS All residents in Malaysia with income from employment and businesses (sole proprietorship and partnership} have to pay income tax and submit stax return annually, Nevertheless, with effect, from year 2013, only an individual who earns an annual employment income of RM30567 (ater [EPF deduction) ha to reste a tax fle” Although an individval who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on Income recelved from outside Malaysia as per section 3 ofthe Income ex Act 1967, wth effect from the year of assessment 2008, Income received in Malaysia from ourside Malaysia is exempted from tax Hence, an individual, either a resident or non-resident, i current on 1 income tx levied in Malaysia ie based on 50 the higher your income, the higher isthe marginal rate for the hgher band. Therefore taxpayers only pay the higher rate on the amount above the rate. Tax rates are on not salary or total Income and chargeable income is ORT daa come Tax Rae arVAZOIE ‘chargeable come (RO) Calulatons (RM) Rate (05)——-Tax{RB) 0.2500 nthe rat 2.500 ° « 2501-51000) Nest 2500 ° 0 5001-10000 On thes 5.000 0 o Next 5,000 2 300 19901-20,000 ‘On tense 10000 2 00 New 10,000 200 2001 35,000 ‘On tefies 2000 6 a0 Nexe 15,000 00 :35901=50,000 (On tetest 35,000 1" 4200 New 15000, sss 50901-70000, Othe r= 50,000, 9 250 Next 20,000 300 9901100000 ‘shes: 70000, 2 5650 est 3,000, 7200 Exceeding 100,000 ‘nthe 100,000, 28 13850 Sauce" come Tax ule 215" Se Noy Woh 986g 2015 "Tax Chargebliy Inland Revenue Bard of Malaysia nd, Web. 20 Feb. 2016, ious gundnohgs humps $8h dun=JBRt pat ants SO00e ste ‘Fax chargeabiiy” Inland Revenue Board of Malaysian Web.20 Feb 2016,[ow Income TAX IS CALCULATED FOR INDIVIDUALS Alltaxable individuals must submit tax returns annually with ether the B or BE forms to the Inland Revenue Board of Malaysia within the stipulated time. With eect from YA 2004, individual income taxes are seléassessed as stipulated in the Income Tax (Amendment) Act 2002. Individuals with ‘Business income sudo the Bform, while those with employmentand non-business incomesubmit ‘the BEform, either by pos, In person or via the internet. 7 Tacos tx computation for nas pled Employment, business ncome, Send, ois, rates, ee ee) cecton 44 Azproves Donations ‘moun personal & dependents ete, masta oxpences for ‘rents eiaton expences, Ingurence & EPF contribution end others [Chargeable Income pid othe ‘etos cf tax to derive tax payable ‘Tax computation in Malaysia is hardly a complicated exercise as but theresa need forthe taxpayer to know the latest information about tax rates and ta reliefs in order to make the correct computation, 165TAXATION Tasotion Policy and dependent 3.000. asc suporting equipment (ey) Ups Disabled individual 5.00 Medical expenses or serious diseases ‘uptes000 for ont ear 2014 ec medal astessment 00 | ‘Purchase of personal compute (once never 5 Yea") ‘upt05,000 ‘etsavingin SPW scheme (with eect rom year assessment 2012 untilyer Up 96000 Sscesemene 201 Interest expeed wo nance purchase a sider po ‘peo 10000 Diba wifefhsband 3300 | {ach urmaried child of 18 years and above who erecevngfultineedueation 1000 “A-Level cerifcate, mation or preparatory courses) | Each unaried hilo 18 years and whols reeving urther education cutside 6000 alga {000 forassessment 2035 onward tnsurance and EPP Uuproso00 | ered Ay apt reat Retirement Scheme Upto 3000, | 166‘oillustrate how tax for individuals is calculate, let us examine the following computation, Tax computation ‘Consider that in 2014 Me Tan had a salary of RMT,000 per month, Therefore, hls annual salary oF employment income is M7000 x 12 = RMBS,000, His EPF contribution amounted to RM9,240, Furthermore, he bought books amounting RMi,000 2nd donated RM2,000 to an approved charity He ismrred ands wifes not workingand he has one chil ged 10. Using Chargeable Income = Agoregate Income — Less Donations Tax Reliefs = Amounts ree a 400 | essDonations ——— 200, tal income wo00 Tess Tax Reliefs fated laa Spouse 3.000 Z ‘000 ee es. 20,000 (maximum allowed) _ ‘Chargeable ncone "920 es 20000" 2000 Tax Fave ust 50.000 (referable) = RM2.850, Balser 12000 © 19% =RW2.260, . ‘otal Tax Payabl 30 In the example, MrTan needs to pay RMS,130 tax o ust 6.10% of his total income. Let us now see how life insurance can help reduce the tax payable for individuals, but before we do that, we shall seuss the types off policis that can be used fo tax deduction purposes. Tay (Obtain BE form from the nland Revenue Board of Malesia, Find ou in which part of he form ‘should insurance premium be filled and read the prt o he guide whieh explains insurance premiums relief Areyou now ready to expla oan insurance custome how they can calm insurance premium elif? Gia QUALIFYING AND NON-QUALIFVING POLICIES In line with the government's objective to encourage national thrift and individual savings, the sovernment has allowed prefs om certain insurance products to be for individuals, thus reducing the tax thatthe individual has to pay. Having ‘ndviduals investing insurance and being responsible fr their own fnancial planning also relieves) ‘he epparmuuamti enon henlbrarnsecuctiom upg a) Tow can the government's education funding beelleviated by encouraging insurance purchases? Some insurance productshave investment characteristics ke endowment funds investment linked insurance, and others. These investments canbe targeted to fund the future education or 167‘TAXATION Taxation Policy [QUALIFVING INSURANCE PRODUCTS ‘The types of insurance claimable as relief to taxpayers fll into 3 mal categories, namely education, nd medical insurance; The type of insurance available for tx relet by individuals snot based on produc cype but on the purpose for which the insurances taken fr. “Tax relief for life insurance policies ‘To encourage Malaysians to save for retirement the government has allowed income tax reli for nd including contebutions to the Employment Provident und OEY Pr erent Schone ESTP cago” 28! BREE on vides for tax elt for the life insurance, EPF, and Funds ‘requlred by law for er taxpayer, The relief for ie insurance is clakmable only ithe premium paid i for coverage of /or spouse and it doesnot incude children. The total 1 R00 is ed together with tax rl or Enplayes Provident und (BPE) conibaton and shared between taxpayer and spouse (Ff joint assessment). Another total of M3000 relief is ‘lowed for SRE => defetananligg, ‘Tax relief for medical insurance policies ‘Tax relief for medical insurance is United to RM3,000jper taxpayer and isclaimable only when premium pad isin respect of medical plc forthe taxpayer, spouse andor Glen emus be noted that th total of M3000 Is ted together with he "The roles provided under the Secon 49183) ofthe Income tax ct 1967. Tax relief for: Ss wc efi we eat reas macy sued «RRA © bv alumpsumstmeny whee hid aces he poem ines ae nation pole oie bent ttn he vent fen ani et heparan ‘uardian the child wil have acces to funds to hep finance his/her education expenses Maxim premium eligible for rl for education and medical Insurance premiums cannot together exceed 'RMS,000 under Section 49(18)(3} © ‘There are two types af children education insurance pols; dawnt or Snvestmenttinked policies. However, before purchasing such Insurances itis better for the taxpayer to ensure that ‘they are eligible for reli by making sure thatthe polly has education’ ora similar word printed life insurance companies will Include a tax relief statement and Sn py te yer pelt fr emteaeemen i spouscan as cin Sear fe, education, and medical insurance premiums butjnation the iscaimer in thelr brochure, The deduction for annuities efecsv for 10 years from YA 2012 unt YA2021 = ure: ncome Tax Act 1967 (2006) Reeves August 10,2015 rom, heer agegoviny Alea Vols4202/ee2053 pa 168TAXATION Taxation Paley "Sure: Satan vere Eton pn Web 9 Fo 26 feat smarts ‘As we have scissd eaten ths book endowment fe surance fa frm of fe insurance that ays the face veto the Isutd, ether atthe end af he contract period, o upon the Insure’ death’! Endowment nsirance seen a savings plan whan element of insurance designed ‘protec the savings plan nthe event of premamre dest, nd by ing the matury tachi’ ty entrance year It can be a god say t0 save money fr the childs education. An ance plan se insurance that combine Investnent and protection The bremims prove nt ont nsane cove bo EES 9 specific investment funds ofthe policy holder’ choee. The applleability of such insurance for tax ‘elles the same a for endowment ‘SmartEducate Saver Grow your child's education fund affordably ‘parents, many of us wonder what our lila ones gong te grow upto bo. A doctor? A lawyer chaps? in any career, good education goose long way towards helping your hid enjoy a Smoathec, more sucoessulourey though if. With the icing cost of edueaton, i's never oo ‘5000 0 prepare forthe day you send your ile one to college ‘SmartEdueate Saver opens the door for your cid to enjoy beter eduction opportunities. An Invesmentinked insurenes plan, it grows your chs education fund with adional Investment ‘locaton while also providing protacton agains the unexpected. You can start with as low 38. FRN100.2 month, making ian sfordabe education plan 1 secure your ches futur. | Sure Sreiueat Seve Cr Eee Life pha Web 9 Fo 206 n/n genase nner ite lah | neta oars Sori ae ‘insurance Glasary - Endowment surance” Intrnational Risk Management Institute, Web.15 eb. 2016, hp na imicom/onlineinsurance-ossar/etns endo ven NSUSNCE ASD 169‘TaxATION Taxation Pellcy ii Inheritance tax a fee pad by a person who inherits money or property trom a person who has passed away. In Malaysia, inheritance tx (oF "Estate Duty’ a i is called) Tanger applies on states created ater 1990, 170TAXATION gibt ar Life Assurance premium relief [insuRawee PROCEEDS Insurance benefits are generally tatable'in the hands of the beneficiary and policy owner as is the case with the accumblation of interest. However, interest earned from the insurance company {is fSHable| Annuity income is taxable at normal rates but exempt from tax inthe hands ofthe annuitant under Paragraph 36 of Schedule 6 ofthe Income Tax AcE 1967, which stipulates that sume received by way of annuities granted under annuity contracts issued by ‘Malaysian life insurers’ are exempt from tax, Malaysian life insurers are those fe Insurers and ‘ahaful operators whose ownership or memberships held in majority by Malaysian citizens [REAL PROPERTY GAINS TAX “Thete Is no capltal gains tax in Malaysia. The only resemblance to capital guns tax In Malays Is sains on transactions relate to reat property, which is known as real property gains tax (RPCT), PGT willnot be applicable on death even fan asset has not been cwned by the deceased for more than five years because a disposal on death deemed to take place at the deceased person's scquisition price ie. a no-galn/no-loss transaction, Executors themselves have no lability to tax on transfering an asset from the estate toa legate, as thsi nota disposal. CORPORATE TAX Corporate tax in Malaysia & levied on taxable Income of incorporated companies and fs not relevant fr individual tax relief. However life insurance premiums paid by corporates for their ‘employees ae claimable business expenses. An example of this is the premium paid by a company forts employee group life plicy, which isfora benef for theirstaf. Compare the situation of a person with an income of 8M36,000 and another wit income of RMB4,000 perannum? Which one wil benefit more from ie isuronce premium rele? Explain why. 62, ELIGIBILITY FOR LIFE ASSURANCE PREMIUM RELIEF All resident taxpayers are eligible for life insurance premium relief A description of who can be ‘considered as a tax resident has been discussed earlier In this Chapter. In the case of partnerships ‘and corporations the following apply: Inthe case of faftiesip NSUFIHES where the frm takes out SU on the fn) lvesofthepariners forthe purpose of isibution in case of dissolution of the partnership, the: 2s tis notfor revenue generating purposes nthe cave where SURES al are ote eu oe va PB an is tater up by each individual partner, tis eimabeven thoug he premiums are pal by the prtershi, + mrprad companies age ele emis ne policies for employes, as business expenses Dass rployees are also Slloweedto claim te rele sts considered a income tothe employee, 171Guidelines by inland Revenue Board of Maaysie “hating Research insurance premium reli for taxpayers In neighbouring countries. Compare the results and alscuss ther signifeance, its 63. GUIDELINES BY INLAND REVENUE BOARD OF MALAYSIA ‘The Inland Revenue Board of Malaysia” administers the Income Tox Act 1967 and issues guidelines fon tax matters to the general public fa many guises including operational guidelines, advance rullngs, public rulings, and other manners of information. Some of the pertinent information related to income tax reliefs asfllows ‘+ ass (2014) stated that eles only available fi is actually paid. So premiums that are ‘treated as ald, walved and not sufered bythe taxpayer or spouse are not eligible for rig ‘+ Section 5i ofthe Income Tax Act 1967 states that notwithstanding sections 47 to $0, no ‘eduction shall be allowed under those sections In ascertaining the chargeable income ofan individual fora year of assessment unless claim has been made for that yea forthe {eduction o fora deduction ofa larger or smaller amount in respect ofthe same subject ‘matter. This in effect, means that the reli mustbe claimed inthe same year that twas pald and cannot be earred forward + Only tax residents are eligible for income tax relief Non tax residents pay a Nat rate oft (2696inva 2014)5 ‘+ Toxreliof for modical and education insurances limited to RM3,000 per taxpayer and is Clalmable under the Section 49(15)(a) ofthe Mncome tax Act 1967 ‘+ Taxreleffor private retirement schemes and deferred annuities slmlted toa total of RMS,000 per taxpayer ands claimable under Section 49(1D) ofthe Income tax Act 1967. ‘+ Tacrelief for employee provident fund and fe insurance i limited to a total of RM6.00, per taxpayer and is elatmable under Section 49(1A) ofthe Income tax Act 1967, Work n groups and develop a simple brochure tobe used to explain to potential clients the benefits of certain insurance premium rellgs when buying Insurance. Compare ie with other groyps dnd ask your {tutor orfcttator judge which brochures the mast convincing on KEY POINTS ‘+The Malaysian tax system depends mostly on direct taxes such as corporation income tax and individual income tax. While the impacto indirect axes has been reducing in proportion of total taxes since I's stil substantial, with the intraduction of the Gods and Services Tax, the percentage would increase in the future. ‘+ Individual wxpayersareeligibe fora hos of tax reli to reduce thet taxable income but Inorder to getthe benefit they must bea tx resident in Malaysia. person who stays more than 182 days na year in Malaysia isa taxresident. ‘nla Rvenve Board Of elesin Np nd Web. 9 Feb 2016 tu oneahasl ey nde shoe "Malaysian Tax Gide For Expats And Non-Residents” Fcoksicom. Np 13 fave 2014 Web. 10 Aug. 2015, ted desskalcomJexpatstamalasia/#> 172‘TAXATION Further reading ‘+ Life insurance premiums pald by the taxpayer for himsel herself and spouse qualifies for Income tax rele for individuals while medial insurance premiums are claimable forthe taxpayer, spouse, and children For ther cildre, taxpayers can enjoy rele for education- related insurance policies as well ‘+The ave governing income taxes in Malaysia sth Income Tax Act 1967 and its numerous amendments. The Inland Revenue Board of Malaysia implements and enforces the Ac. “© Corporates and parnerships can also enjoy deductions (as expenses) for tax purposes ‘when they purchase lf insurance for the benefits oftheir employees. Tis is however, ‘taxable a a benefit in kind in the hands ofthe employees FURTHER READING ( Pre-Contract Examination for Insurance Agents Study Guide. Kuala Lumpur: Malaysian Insurance Institue, 2009, Print. (2 2015 Budget Commentary & Tax information. Kuala Lumpur: Malaysian Insite of Certified Public Accountants, nd Peat [REVIEW QUESTIONS AND ANSWERS ‘ow much cares woud a person pay fhe has chargeable income of RM40,00 for the yeor of assesment 2014?‘TAXATION Review questions and answers | @ The government of Malaysia encourages residents to pay for their own medial expenses to aileviace the governments burden providing healthcare oll How much an the taxpayer {aim from mec! insurance premlams per year? | | Are insurance benefits payable on maturity and for death claims, taxuble? FQ | death benefits are paid to the estat ofthe deceased insured, woud the Beneficiary be subject. to ax aspart ofthe inheritance? PQ Hewat cumstances Ife leserencep ‘Mr ogman ncared a medal surance prem of R000 bt duet specal ‘arrangements asa cient forthe insurance compan, he only had to pay RMSOO forthe year 201 How mich cam ect In Y4.2047 ‘Income tax from individuals and corporations are considered as direc taxes by the government. What then oreindirec taxes? 174