6 Salmah

Income tax payable for the year of assessment 2020

RM RM
Section 4(a) - Business
Adjusted business loss (current year loss 27000) -27000
Adjusted income 0
(+) Balancing charge 2000
Statutory business income - Cosmetic 2000
Share of adjusted income - Partnership 3000
Aggregate statutory business income 5000
(-) Brought forward business loss -1000
Net aggregate statutory business income 4000

Section 4(b) - Employment

Section 13(1)(a)
Salary (120000*6months) 72000
Entertainment allowance (1000*6) 6000
78000
Section 13(1)(b)
Leave passage - overseas (exempted RM3000) 1000
Furniture (280*6) 1680

Section 13(1)©
Accommodation
Define value exclude furniture 24000
vs
30% x 13(1)(a) 23400
Lower of 23400
Gross employment income 104080
(-) Entertainment allowance (maximum) -6000
Adjusted income/ statutory employment income 98080
Aggregate income 102080
(-) Current year losses from cosmetic business -27000
(-) Cash donation to government (allowed in full) -12000
Total income 63080
(-) Reliefs:
Self 9000
Spouse (4000+5000) 9000
Breastfeeding equipment 1000
Child 2000
EPF 4000
Course fees (maximum) 7000
-32000
Chargeable income 31080

First RM20000 150

Next RM11080 x 3% 332.4
482.4
(-) Rebate (Chargeable income not more than RM35000 and spouse relief) -482.4
(400+400)(max482)
0
6(a) Natasha
Income tax payable for the year of assessment 2020

RM RM
Section 4(b)
Section 13(1)(a)
Gross monthly salary (100/89*8900*12) 120000
Bonus (10000*2) 20000
Joining fee individual membership club 12000
Monthly subscription individual membership club 700
152700

Section 13(1)(b)
Car (5000*10/12) 4167
Driver (600*10) 6000

Section13(1)©
Accommodation
Define value (2000*12) 24000
vs
30%*13(1)(a) (30%*152700) 45810
Lower of 24000*10/12 20000
182867

Section 4(d)
Royalty (exempted RM12000) 10000
Aggregate income 192867
(-) Donation (fully deductible) -40000
Total income 152867
(-) Reliefs :
Self 9000
Spouse 4000
EPF (max 4000) 4000
Medical treatment with serious desease 4000
Fertility treatment 3000
Private retirement scheme (max3000) 3000
-27000
Chargeable income 125867

First RM100000 10700

Next 25867 24% 6208
16908
6(b) The directors' fees would not subject to income tax in Malaysia as the income is derived
from a source outside Malaysia.
The income would be exempt from income tax as it is a foreign source income.
4 Azure and June
Partnership
RM'000 RM'000
Provisional adjusted income (loss) -40
(-) Private expenses to partners
Interest on capital:
Azure (360*0.1*10/12) -30
June (240*0.1*10/12) -20
Salary:
Azure (5*10) -50
June (5*10) -50
Divisible loss -190

Azure June
RM'000 RM'000
Divisible loss:
Azure (-190/2) -95
June (-190/2) -95
(+) Private expenses to partners
Interest on capital 30 20
Salary 50 50
Adjusted loss (current year loss ) -15 -25
Adjusted income 0 0
C/f Capital allowances (Azure 6, June 6)
Statutory income 0 0

Section 4©
Interest 0 13
Section 4(d)
Rental (28-30) 0
Aggregate income 0 13
(-) Current year loss 0 -13
(-) Donation (lost) 0 0
Total income 0 0

Unabsorbed business losses 15 12

Capital allowances carried forward 6 6
(a) Discounted price for consumable products of an employer received by an employee
is exempted up to RM 1000. If the value exceeds RM1000, the excess shall be taxable.

For Y/A 2023, each employee shall be taxable on th excess of RM300 where it is provided
free of charge (fully discounted) and the value exceeded RM1000.

For Y/A 2024, each employee is exempted from tax as the discount given does not exceed
RM1,000.00

(b) Discounted or free service provided by an employer to its employee is fully exempted from tax.

Free consultation service for employee is fully exempted.

Discounted amount for purchase of the bank's investment product is not a service, so it Is fully taxable
and investment product is not a consumable product, so it will not be given exemption of RM1000.

© Benefits received by an employee from their employer may be exempted from tax.
But if the benefit is received by an employee from a company within the same group of companies
are not exempted from tax.
Therefore, Alfred is taxable for RM400 and Benny is exempted from tax.

(d) (i) Traditrional medicine for treatment of illness:

Traditional medicine which qualify for exemption are treatments given by a medical practitioner
registered with bodies that are certified or registered with the Ministry of Health. For example:

- Persatuan Perubatan Tradisional Melayu Malaysia

- Chinese Phisician Association of Malaysia

(ii) Maternity expenses:

Maternity expenses which qualify for exemption cover the treatment of pregnancy or child birth
provided by:
- Certified medical doctors who practice modern practices
- Medical practitioner registered with bodies which are certified or registered with the
Ministry of Health for traditional medicine.
Is fully taxable
of RM1000.
(a)
Package A RM Package B
Section 13(1)(a)
Salary (
Entertainment allowance 6000

Section 13(1)(b)
Company car 5000
Petrol (exempted) 0
Gardener 3600
RM