Withholding Tax Tutorial 24/10/2023 Question 9

Question1 RM Rm100,000 design fees to Yang, a non-tax resident individual fall under special class of income,S4(A)(ii).
Total fees to public entertainment 1500000 However,it doesn't subject to witholding tax as the service was performed in Taiwan,outside Malaysia .
Payment for portion of service performed in Msia (Rm1.5 mil *3/15) 300000
ABC SDN Bhd (-) ded 45k when pay to Alex
Total witholding tax (300k *15%) 45000 And remit to IRB within 1 months Rm130,000training fees falls under S4(A)(II) special class of income.The income tax is deemed derived
Alex accept balance payment,final tax (x declare) From Malaysia as the responsibility of payment fall under the tax resident,XYZ SDN DHD and the service
was performed in MYS. Therefore,payment of training fees to non-resident shall subject to WHT
Question 2-Contract Payment —10%+3% at 10% of gross income
RM RM
COST of plant & machinery 0 Training fees 130,000
Cost of service 4000000 WHT (10%) (130k*10%) 13000
Portion subjected to witholding tax 4000000
(ii) The payment of Rm 7000 doesn't subject to witholding tax as the reimbursement in respect of
Witholding Tax 10% 400000 hotel accommodations in Malaysia is excluded from requirement of WHT.
Withholding Tax 3% 120000
520000

Question 3-Contract Payment —Partnership RM RM Question 8 RM

SERVICE PORTION 1,000,000 (A) Installation fees (paid on 1/3/2023) 65000
WITHHOLDING TAX ( 10% of special class of income) 6500
Portion subject to witholding tax (I's income) 200000
I - non-tax resident ( 1mil*20%) Consultancy fees(contra 1/6/23) 315000
WHT ( 10%* 315000) （ 10% of special class of income) 31500
Witholding Tax 10% 20000
Withholding Tax 3% 6000 Consultancy fess (paid on 15/8/2023) 189000
26000 WHT (10%* 18900)(10% of special class of income) 18900

Question 4-Contract Payment-10%+3% RM RM (II) UVW is required to deduct the witholding tax of 10% based on the gross payment when paying/
Cost of service of the contract 1,000,000 crediting to Ultra and subsequently remit the tax withheld to IRB within 1 month after date of payment.
or crediting
Portion subject to witholding tax (JKL PTE LTD) 1,000,000 Date to Deduct Date to Remit to IRB
I - non-tax resident contractor (payment/contra date ) (one month after)
Installation fees (paid on 1/3/2023) 1 March 2023 1 Apr 2023
Witholding Tax 10% 100000
Withholding Tax 3% 30000 Consultancy fees(contra 1/6/23) 1 June 2023 1 July 2023
130000
Consultancy fess (paid on 15/8/2023) 15 Aug 2023 15 SEPT 2023
Chargeable Income 300,000
Tax payables (300000*24%) 72000
72000
(-) Witholding tax -100,000 (iii) In this case of non-compliance with witholding tax provision, 10% of penalty shall arised based on unpaid witholding
Tax Payables/ Refundables -28000 tax by UVW. The gross amount of expenses would also be prohibited from tax deductions in arriving adjusted income
of business source and prohibited from claminng relief for capital expenditure or capital allowances.

Question 5 Question 6
(a)Rm500,000 payment to Mrs Patrice represent payment for interest to a non-tax resident person. Quin
The interest income of Mr Patrick is deemed derived in Malaysia as the responsibility of the payment Rm 5000 commission to Quin represent payment to tax resident,thus does not subject to witholding tax.
fall under a tax resident (People SDN BHD)& the money borrowed was used to finance/ fund development
of the theme parks in Malaysia ( operations in MYS) Rajesh
Therefore, witholding tax of 15% shall applicable to the gross income of the interest. Rm8000 commission to Rajesh constitute casual income under S4(f).The casual income is deemed derived
From Malaysia as the responsibility of the payment fall on the tax resident QRS SDN BHD.
RM Therefore,the payment to non-tax residents would subject to WHT.
INTEREST 500,000 RM
WHT (15%*500,000) 75000 Commission 8000
Withholding Tax (8000*10%) 800
(B)RM700,000 payment of royalty to PINK SDN BHD doesn't subject to witholding tax as it represents
payment to Malaysia tax resident.
Question 7 RM
(C) Cost of Plant & Machinery (a) Technical Assistance Fees 80000
Payment of the purchase of plant & machinery doesn't subject to witholding tax as the cost of plant & Witholding Tax (10% x8000) 8000
machinery doesn't fall under the provision of witholding tax. Penalty (10% x 8000) 800

Technical Installation Service

Payment for provision of technical installation services for plant & machinery purchased fall under the scope (ii)Payment of installation services fall under the scope of special class of income S4A(i) .The installation
of Special Class of Income.S4A(I) charges is deemed derived from Malaysia as the responsibility of payment fall on tax resident.
The income of Pyunsung from installation is deemed derived from Malaysia as the responsibility of payment Timber SDN BHD and the installations service was carried out in Malaysia.Therefore,payment of installations fees to
fall under a tax resident and the installation services was rendered in Malaysia. non-resident person shall subject to witholding tax, the fact that there is business presence (branch in Malaysia )
Therefore,payment for technical installation services to non-resident person,Pyunsung incorporated is irrelevant.
shall subject to witholding tax at 10% of gross payment. Timber SDN BHD is required to withold 10% of gross payment RM 10% X RM40000=RM4000 when making payment to
Toyo PTD LTD and remit the tax witheld to Inland Revenue Board (IRB) within 1 month after date of payment / crediting.
RM
Technical installation services 5,000,000
Withholding Tax (10%*500,000) 50000 (b) Payment of interest to non-resident company shall subject to witholding tax at 15% of gross interest.
Interest income
Contract work on infrastructure and buildings
Payment of contract works on infrastructure and building of Rm 1700,000 is a Malaysia source of income
as it represents payment for project work carried out in Malaysia. RM
Loan 5,000,000
Therefore, the payment of the contract works to the non-resident person, ie Pyungsung Incorporated Interest (4% X 5000,000) 200000
Shall subject to witholding tax of 10% + 3% Witholding Tax (15% x 200,000) 30000
RM
Contract payment 1,700,000 The subsidiary Company is required to withold RM 30,000 when paying or crediting the interest of RM 200,000
to parent company and to remit the tax witheld to IRB within 1 month after date of paying or crediting.
Witholding tax 10% 170000
Withholding tax 3% 51000 From the perspective of recipient ( Japanese Company)
Total witholding tax 221000 The RM 30000 tax witheld by subsidiary company shall represent final tax of RM200,000 interest income.
Question 10 for Witholding tax
(I)
The interest income of Pear Inc is deemed derived from Malaysia as the responsibility of payment fall on
Guava SDN BHD, a Malaysia tax resident and the money borrowed from Pear INC was use to finance
its operations of R & D centre in Malaysia.

The interest expenses of Rm 35000 is deductible against Guava's income derived from Malaysia when
computing income tax.

(ii) Witholding Tax Payables Computation RM

Interest Income 35000
WHT (15%*35000) 5250

(iii) The amount of witholding tax borne by Guava SDN BHD (payer) shall not deductible in arriving
adjusted income from business source of income of Guava SDN BHD for income tax purpose.
RELIEF OF CAPITAL EXPENDITURE HOME WORK
Exam types Question Tutorial 17/10/23 QUESTION 4
Question 1 GHI SDN BHD
ABC Sdn BHD Chargeable Income Computation for YA 2023 RM'000 RM'000
Income tax computation for the YA 2023 RM'000 RM'000 (-) (+)
(-) (+) Non-taxable Non-deductible
INCOME NON-Deductible Profit Before Tax 5698
Profit Before Tax 6250 (+/-) Adjustment
(+/-) Adjustment Depreciation (Non-deductible-provision) 988
Depreciation & Amortisation of factory & PPE (Non-deductible-provision) 240 2 Unrealised Gain from Foreign Exchange of the sale of tires (non-taxable) 40 1
Rental (Relocation) 700 1 Provision in respects of claims (Non-deductible) 27 1
Depreciation 1100 Payment to settle a claim 8 1
Reserve of warranty 117 2 Interest Income Fixed Deposit (Relocations) 100 2
Insurance (Deductible) 0 3 Trade Debtors (Relocations) 200 2
Salaries , Wages & EPF (Deductible) 0 3
Foreign exchange loss Loan payment (Non-deductibles) 60 4 Compensation for early retirement (Deductible) 220 3
stock (Deductible) 0 4 Legal Cost Trading goods lost in transit (deductible) 0 4
Unrealized loss on settlement of trade debts (Non-deductibles) 30 4 Expenses to obtain a trading license(non-deductible) 8 4
Unrealized gains on the purchase of stocks (non-taxable) 30 4 Repairs & Maintenance-extension(non-deductible) (capital expenditure) 32 5
Annual General Meeting Expenses (non-deductible) 19 6
Lease Rental First Lease (deductible) within max 0 5 Practicing Training (deductible) 0 7
Second Lease (deductible) within max 0 5 Donations To approved Institution (Relocations) 530 8
Third leases (non-deductible) (incurred RM9000*7months) 5 Sports Equipment approved by the minister (Relocations) 16 8
restricted to max deduction (50k-(9000*3months)) 40 5 Project of national Interest approved by the minister (Relocations) 48 8
Cash to old folk homes approved by the minister (Relocations) 6 8
Compensation for early retirement (deductible) 30 6
Compensation to customer (deductible) (trade contract) 0 7 Insurance Proceeds-Accident Death of Company's CEO (deductible) 0 9
Installations costs of new generator (non-deductible) (capital expenditure) 30 7 Export credit insurance premiums (double deductible) 17 10
Bad debts written off-former director (non-ductible) 34 7 Library Facilities (deductible up to 100k) (110k-100k=10k -Non-deductible） 10 11
Contributions to social organization (non-deductible) 11 7 Penalty of late submissions of tax return (non-deductible) 15
Audit & accounting fees (deductible) 0 8 Hire Purchase Interest （deductible) 0
Feasibility study for a new project (non-deductible) 25 8
Legal fees for trade debts (deductible) 0 8
Legal fees for trade contracts (deductible) 0 8 577 7405
Income tax appeal (non-deductible) 7 8 -577
Contributions to political party (non-deductible) 2 8
Tax submissions fees (deductible) (max deductions of RM 15000) 0 8 Adjusted income 6828
Research on approved project (double deductions) 500 9
Decrease in general provision (non-taxable) (19000-16200) 2.8 10 (+)Balancing charge 0
Decrease in special provision (taxable) (specific-14500-12300) 0 10 6828
Bad debts written off-own business (deductible -0) 0 10 (-) Capital allowance current year 895
Bad debt written offs -acquired business (non-dedcutible)(+) 3 10 -895
Recoveries -own business (taxable) 0 10 Statutory income from business 5933
Recoveries -acquisition business (non-taxable) 3.2 10
Fixed partitions for new offices (non-deductible) (Capital expenditure) 40 11
Moveable dividers (non-deductible) (Capital expenditure) 60 11 S4(c) Interest
Loss on disposal of assets (non-deductible) 70 12 Interest income Fixed Deposit 100
Trade Debtor 200
Statutory Interest income 300
1266 8119
-1266 Aggregate Income 6233
(-)Approved donations
Adjusted income 6853 Contribution To approved Institution 530
Sports Equipment approved by the minister 0
(+)Balancing charge 10.2 Project of national Interest approved by the minister 48
6863.2 Cash to old folk homes approved by the minister 6
(-) Capital allowance current year 401.2 584
B/ f brought forward 186 （restricted to 10% of aggregate income) 623.3 -584
-587.2
Statutory income from business 6276 Total/Chargeable Income 5649

S4(d) Rental
Rental income 700

Statutory rental income 700

Aggregate Income 6976

(-)Approved donations
Contribution to political party (Not government) 0

Total/Chargeable Income 6976

QUESTION 2 QUESTION 3
BOB Chargeable Income Computation for YA 2023 RM'000 RM'000
Total Income Computations for YA 2023 RM RM (-) (+)
Profit Before Tax 52800 Non-taxable Non-deductible
(+/-)Adjustment Profit Before Tax 9605
Salary to Bob (owner) (non-deductible) 66000 1 (+/-) Adjustment
Salary to Bob's wife being cashier (deductible 3000/months)(48k-36k) 12000 1 Interest Income from Fixed deposit (Relocation) 180 1
EPF (max 19% of remuneration)(20%-19%=1%) 1092 2 Drawings of Inventory / Goods (Non-deductible)(Market value) 68 2
Depreciation of car (15450*75%)(business) 15450 3 Salaries of staff & excutice director (Deductible) 27 3
Car Running Expenses Self (non-deductible) 25% 3 Salaries & Bonus to disabled staff (Double deductions)(-) 42 3
Business (deductible) 75% 3 EPF STAFF (within max of 19%) 0 4
Donations to approved institution (Relocation) 10600 4 DIRECTOR (25%-19% max )=6% (non-deductible) 144 4
Donations (Relocations) 18 5
Mobile Phones Bob (sole trader) Advertising Brand on Internet via host websited in MSIA (double deduct) 28 6
Irene (cashier) Cost to develop websites （20% of deductions for 5 years)/ 80 6
Richard (accountant) Lease Rental Of Building 7
Entertainment Business (100% deductible) 0 8
Leave Passage Irene, Oversea trip, New Zealand (Non-deductible) 3400 6 Entertainment of Trade suppliers (50% deductible)(20000*50%) 10 8
Bob,Oversea Trip,Australia (Non-deductible) 2500 6 Entertainment wholly related to sales (100% deductible) 0 8
Reimbursemnt of salries & EPF of drivers 8
Free meals (Deductible) 0 7
Computers to employees (Non-deductible) 5000 8 Foreign Exchange Loss-Purchase of component parts
Realised Loss (Deductible) 0 9

Repairs & Maintenance Revenue in nature (deductible) 0 10

Installation Cost Of machinery Capital expenditures ( non-deductible) 18 10
Renovations cost for disabled workers (double deductions) 30 10

Increase on general provision (Non-deductible)(+)(1799-1250) 549 11

Increase on specific provision (Deductible)(0) (1375-951) 0 11
11

Freight & Insurance (deductible) 0

Depreciation (non-deductible) 840
Motor Vehicle Expenses (deductible) 0
Tax Filling & Secretarial fees (up to 15000) 18
-15 3
 280

Adjusted income

(+)Balancing charge 0
0
(-) Capital allowance current year 955.4
-955.4
Statutory income from business -955.4

S4(c) Interest
Interest income Fixed Deposit 180

Statutory Interest income 180

Aggregate Income -775.4

(-)Approved donations
Contribution made to a fund raising campaign organised by suppliers of company 18

（restricted to 10% of aggregate income) -77.54

Total/Chargeable Income

Income Tax Payables (24%*

Tax Administration Question 22 RM
Additional Tax 2000
Question 1 RM Penalty (2000*10%) 200
Actual/ Deemed Tax Payables 800 Total tax liability 2200 Due on 15 Jun 2023
(-) Instalments paid -600
Balance tax 200 Question 23
Under self assessment system, the computation of income and tax liability fall on
Penalty (10%) 20 tax payer ,where tax return furnished by tax payer shall deemed to the notice of assessment.
Outstanding tax 200

Question 3 The form BE submitted by Olivia shall be the deemed notice of assessment for YA 2022.
RM RM DGIR is deemed to have the notice of assessment on her and she is deemed to be
Additional Tax Payables 4000 served on the notice of the day she submitted her tax return, 28 Apr 2023
Penalty (4000*10%) 400
Total Tax Liability 4400 The form C by PAC shall be the deemed notice of assessment,for YA 2022,
DGIR is deemed to have the serve the notice of assessment on the company.
Question 4 The company is deemed to be served on the notice on 31/1/23
(The date which tax return was submitted)

Question 5 RM Question 25
Actual Tax payables 10000
Tax estimates by tax payer -5000 Increase Assessment
Different 5000 Served when there is additional tax liability agree by taxpayers
30% of actual tax payable (10000*30%) 3000 as a result of appeal
Excessive differences 2000
Penalty (10%) 200 Increased assessment is final and conclusive.
The tax payer is unable to appeal.
Question 6(i) Penalty
May Instalments 4000*10% 400 Additional Assessment
Sept Instalments 4000*10% 400 Raised when additional tax on top of original assessment.
Total Penalty from late payment 800
of tax instalment Tax payer can lodge on appeal against additional assessment within 30 days
RM from the day it was served.
(ii)Actual tax Payables 42000
Tax estimates by tax payer 24000 Question 26
Differences 18000 Application of extension of appeal period is required as Quin has missed out the valid
30% of actual tax payables 12600 appeal period of 30 days from the date which the notice of assessment was served.
Excessive differences 5400
Penalty -10% 540 Procedures of the appeal as follows
1) Submit a written application to Director General of Inland Revenue (DGIR) to request for extension
of period,reason on the application shall be specified.
Question 7 RM
Actual /Deemed Tax Payables 25300 2) On received of application, DGIR shall review the reasons of the application for extension.
(-) Portion of tax from employment income If DGIR is satisfied with the reason,approval of the extension of appeal shall be granted and Quin shall
be notified accordingly.Upon receiving the notice of approval,Quin can proceed to appeal against the
(25300*84000/130000) -11807 additional assessment.
Portion of tax from business income 13493
3) If DGIR is not satisfied with the reason,Quin will also be notified on the reject.Meanwhile,the
Revised Tax estimates 9000 application of extension shall be forwarded to Special Commissioner together with the reason of reject
Different 4493 by DGIR.
30% of actual tax payable (13493*30%) 4047.9
Excessive differences 446 4)If Quinn is not satisfied with the rejection of application by DGIR ,he can within 21 days from the date
Penalty (10%) 45 he was notified on the receipt,submit written representation to Special Commission for the
application of extension.

Question 8 5) Decision of Special Commission shall be final and conclusive whether or not approval is granted.
Tax estimates for YA 2023 60000 In this case,if approval is granted by the Special Commissioners on the extension of appeal period,
Quin can proceed to lodge the appeal against the additional assessment.
Lowest Tax estimates for YA2024
(Not less than 85%based on previous year tax estimates)
=60000*0.85
51000

Question 9 Question 27
Basis period = 1 Jan2023-31 Dec2023 Tax payer can written application by lodging appeal within 5 years after the end of year end
of the assessment was deemed to be made,for relief in respect of error/ mistakes.
(I) Due date for submit tax estimates for YA2023= 1 Dec 2022
In this case of Rajesh,the tax return For YA2019 was filed in YA2020
(ii) Due date for the first instalments payment —-15 of the following month (The assessment was deemed made in Ya2020)
15 Feb 2023 therefore,the application to claim relief in respect of error or mistakes is required to be made by
31/12/2025.
iii)Due date for the balance tax= within 7 months of the closing
31July 2023 Therefore,the assessment for YA 2019 can still be reviewed as the appeal lodge by Rajesh
for relief in respect of error or mistakes is within the valid period.

Question 10
Due date for tax return submission 30June 2023
Refund within 90 days(31+31=28) 28 Sept 2023
Actual refund date 11Nov 2023 Question 28
Late by (2+31+11) 44 days Upon receiving appeal lodged by a taxpayer, a review shall be carried out by the DGIR which may result
In follow;
Compensation =13200*2%* 44/365 = 31.82465753

Question 11
(i)Helium SDN BHD is a new company with ordinary shares capital exceeds Rm 2.5 midland lesser than
6 months,therefore submission of tax estimates is not required.
(Ii) Helium SDN BHD is a new company with ordinary shares capital allowances exceeded Rm 2.5 mil.
Basis period less than6 months,therefore,payment of tax via monthly instalments is not required.
Any tax payables for 2023 shall be remitted as a lump sum.Balance tax within 7 months from
end of basis period (ie by 31 July 2024)
Question 12
(I) Ivan may request variation of instalments payment by writing to collector of IRB not later than 30 June 2023
(I) Written agreement between taxpayer and IRB is formed ,notice of assessment issued by DGIR
(Increased assessment,reduced assessment,etc)
(ii) An oral agreement between taxpayer and IRB is formed,if no objection is made by taxpayer
within 21days of such oral agreement,
Then,there will be a deemed agreement.Taxpayer can appeal within 30days from which the
deemed agreement was form.
If there is no objection, a written agreement shall be in force.
(iii)Written proposal being made by DGIR.If no objection were made by the taxpayer on such
written proposal within 30 days,there shall be a deemed agreement.
If within 30 days of deemed agreement, no objection were made by tax payer,then a written
agreement shall be in force.

(ii) If approval is granted for variations of instalments payment ,10% penalty shall be applicable on excessive differences
from under-estimation(ie those exceed 30% of actual tax liability)
(iii)If deemed /actual tax liability exceed revised tax estimates ( instalments tax),the shortfall
(Ie balance tax) shall due on 30 June 2024.
Cases of appeal which cannot be resolved within 12 months from the date of appeal which was
lodged,the cases shall be forwarded to Special Commissioner.
In this case where DGIR required more than 12 months to resolve the issue, DGIR may apply to MOF
for extension of period not exceeding 6 months.

Question 13
(i)31 May 2022 must submit tax liability. YEAR END 30 JUNE ; gaps 30 days.
(ii) The tax estimates for YA2023 should not be lower than 85% of revised tax estimates from YA2022.

Question 14
(i ) Prior any revision of tax estimates , tax instalments of FES shall amount to Rm10000(Rm120k/ 12)
commencing second months of basis period (ie Aug 2021),due by every 15th of every calendar
Month.

(ii) FES SDN BHD can submit its earliest revision of tax estimates in the 6th. Month of basis period
(ie Dec2021)

Scenario 1: Tax estimates revised before Dec instalments paid

RM
Revised tax estimates 123850
Instalments paid AUG-NOV (4*10000) -40000
Balance tax instalments 83850

Revised instalments (83860/8) 10481

The excess of Rm83850 after revise tax estimates shall be payable in 8 equal
instalments of Rm 10481 from Dec 2021 to July 2022

Scenario 2:Tax estimates revises after Dec instalments paid

Rm
Revised Tax estimates AUG-Dec 123850
Instalments paid (5 months x10000) -50000
Balance tax instalments 73850
Revised instalments (73850/7) 10550

The excess of Rm73850 after revise tax estimates shall be payable in 7 equal
instalments of Rm 10550 from Jan 2022 to July 2022.

(C) FES SDH BHD can revise its tax estimates in the 9th month of basis period (ie March 2022)

(D) The date of which tax return was submitted by KES SDN BHD shall also be the date of which deemed
notice of assessment was deemed to be served to KES BY IRB, 20 Jan 2023.
Home Work-Tax Administration
Question 15
(A)Original Tax Estimates =RM33600
Tax instalments per month =Rm33600/12
=33600/12
2800

Laut SDN BHD shall pay the first tax instalments for year of assessment 2022 on /by 15 Feb 2022
(Ie the second month of basis period)

(B)Laut SDN BHD can revise its tax estimates in the 6th and or the 9th of the month of the basis period
(Ie June 2022/ September 2022)

Scenario 1: Tax estimates revised before June 2022 instalments paid (May)
RM
Revised tax estimates 45600
(-)Instalments paid before revised Feb-May(4*2800) -11200
Balance tax instalments 34400

Revised tax instalments (34400/8) 4300

The excess of Rm34400 after revise tax estimates shall be payable in 8 equal
instalments of Rm 4300 from Jun2022 to Jan 2023.

Scenario 2:Tax estimates revises after June 2022 instalments paid

RM
Revised Tax estimates 45600
(-)Instalments paid (5 months x 2800) -14000
Balance tax instalments 31600
Revised instalments (31600/7) 4514.285714

The excess of Rm 31600 after revise tax estimates shall be payable to IRB in 7 equal
instalments of Rm4154 from July 2022 to Jan 2023.

RM
(C) Actual Tax Liability 85000
(-)Revised tax estimates -45600

Differences 39400
30% x actual tax liability (30% * Rm85000) 25500

Excessive differences 13900 (If no excessive differences )

—-No Penalty
Penalty of 10% of excessive differences 1390
(D) The balance tax of Laut SDN BHD shall be due on the last day of 7 months from the end of basis period,
(Ie due on 31 July 2023)

Question 16
Mariam-sole trader,individual with business
Tax return: 30 June of the following year, 30/6/2024

Question 17
Mariam-Employee, individual without business
Tax Return: 30 Apr of the following year, 30/4/2024

Question 18
Mariam arrived in Malaysia at 1 July2023, required to notify DGIR within 2months, 31 August 2023.

Question 19
Company
Due date : within 7 months of the period.
Basis period; 1 November 2022 to 31 October 2023
Due date : 31 May 2024

Question 20
Company
Due date : within 7 months of the period.
Basis period; 1 November 2022 to 31 December 2023
Due date : 31 July 2024

Question 21
Mariam-Employee, individual without business
Tax Return: 30 Apr of the following year, 30/4/2024

Olivia can made the amendment for the tax return on 1 May 2023-31 Oct 2023.
Time frame-6 months
Question 1 Question 13
Year of assessment fall on YA 2023 , based on the calendar year basis. (I)Disposal of double storey house by Chris shall qualified for Schedule 3 Private Residence exemption
as Chris and her family has occupied the real property as place of residence prior disposal.
Question 2 Besides,she has never made any election for Private Residences Exemption-to this.
Disposal-Citizens Citizens-3% Non-Citizens-7%

Total Consideration = Cash + Loan + Assets (ii) RPGT TREATMENT OF CARL

The gift of chargeable assets from parents to children fall under no gain no loss transactions as the
Whole money considerations VS 3% of Total Considerations donor ( Carl ) is a Malaysia citizen.
185000 3% of Rm185000 5550 Therefore,disposal price of Carl is deemed equal to acquisition price,no chargeable gain shall arises.
80000 3% (Rm80k+200k) 8400 The transfer of ownership doesn't subject to RPGT
1000 3%(Rm1k +99k) 3000
(whichever is lower)
Computation of RGPT-Carl
Acquisitions date 3/32020
Question 3 Disposable date 2/2/23
Acquisition date 9 Sept 2006 RGPT 30%
Disposal date 6 June 2023 (First 3 years)
RGPT (6th year) 10%
Disposal Price RM RM Disposal price RM RM
Consideration 280,000 Consideration (Received) 178000
(-) Permitted Expenses Extension -18800
Disposal Price 261,200 (-) Acquisitions price
Consideration paid by Carl 118000
(-) Acquisition price (+) Incidental cost incurred by Carl 1180
Consideration (Paid) 68,000 Acquisitions price of Carl 119180
(+)Incidental cost Legal Fees 1000 (+) Permitted Expenses of Carl- Extension of property 38880
158060
(-) Recoveries Compensations -58000
-11,000 (-) Recovery of Carol —-Insurance -28000
Chargeable Gains 250,200 -130060
Real property gain tax payables (10% of chargeable gain) 25020
Chargeable Gain 47940

(-) Schedule 4 Exemption 10000

Question 4 Rm10000 4794
Acquisitions Date Feb 2019 Or 10% of chargeable gain
Disposal Date Nov 2023 Whichever is higher -10000
RGPT (5th year) 15% 37940
(-) Allowable loss from other property -
Disposal Price RM RM Gains subject to real property gain tax 37940
Consideration 7,000,000 RGPT PAYABLES (30%*37950) 11382
(-) Permitted Expenses -51000
(-) Incidental costs Advertising 20000 Question 14
Legal expenses 30000 -50000 Disposal price 280000
6,899,000 Acquisitions costs 314000
(-) Acquisition price Allowable loss -34000
Consideration (Paid) 6,000,000
(+) Incidental cost Professional Fees 50000 YA 2023
Stamp Duty 109000 Property
6,159,000 Acquisitions date 16/11/2021
(-) Recoveries Compensations -80000 Disposal Date 5/ 7 /2023
Forfeited Deposit -500000 RGPT RATE 30%
-5,579,000 (Within 3 years)
Chargeable Gains 1,320,000
Real property gain tax payables 198000 Disposal price RM RM
Consideration (Received) 423000
Question 5 (-)Permitted Expenses Agent fees 4300
Ali Real Property Gain Tax Computation for YA 2023 Enhancement costs 198000
-202300
Acquisitions date 13/12/1995 Disposal Price 220700
Disposal Date 6/6/2023
RPGT 0% (-)Acquisitions price
Consideration paid 100000
Disposal Price Citizen & PR need to update RM RM
Consideration 898,000 (+)Incidental cost Legal fees & stamp duty 2500
Consideration (updated to market value 1/1/2023) 438000
(-) Incidental costs Loan interest 0 (-)Recoveries -
-438000 -102500
Chargeable Gains 460,000
Chargeable Gain 118200
(-) Schedule 4 Exemption 10000
Rm10000 46000 (-)Allowable loss from other property -34000
Or 10% of chargeable gain
Whichever is higher -46000 Gains subject to RPGT 84200
414,000
(-) Allowable loan from other property - RPGT Payables (30%* RPGT) 25260
Gains subject to real property gain tax 414000
RGPT PAYABLES (0%* 414000) 0
Question 15
Doris is entitled to claim Private Residence Exemption ,Scheduled 3 Exemption upon election by writing
Question 6 to IRB.
Acquisitions Date 18/8/2018 She is a permanent resident in Malaysia and disposing a private residence property.The house is a private
Disposal Date 18/7/2023 residence as Doris had been occupied it as a place of residence prior disposal.
RGPT (5th year) 15% Besides that, Doris has not made any prior election on the exemption as this is her only property owned.
Disposal Price RM RM
Consideration 500,000 Question 16
(-) Permitted Expenses Enhancement 50000 Acquisitions date Jan 2016
Legal expenses 3800 Disposal Date Mar 2019
(-) Incidental costs Valuation Fees 6800 RGPT RATE 20%
Advertising 1800 (4th year)
Brokerage expenses 12800 -75200 RM RM
424,800 Disposal Price 0

(-) Acquisition price (-) Acquisitions Price

Consideration (Paid) 350,000 Consideration paid 300000
(+) Incidental cost Stamp Duty 3500 (+) Incidental cost Stamp duty 5600
Legal fees 4400
353,500 Interest 0
(-) Recoveries Compensations -31200 310000
Forfeited Deposit -10800 (-) Recoveries -330000
Insurance -11800 20000
-299,700 Chargeable Gain 20000
Chargeable Gains 125,100
(-) Schedule 4 Exemptions
(-) Schedule 4 Exemption RM10000 100000
RM 10000 10000 10% of chargeable gain 2000
Or 10% of Chargeable Gain (10% of 125100) 12510 Whichever is higher -10000

Whichever is higher -12510 Gains subject to RPGT 10000

RGPT PAYABLES (10000 *20%) 2000
Gain subject RGPT 112,590
RGPT PAYABLES (15%*112590) 16888.5
Disposal on Year 2022
(ii) Disposal price RM RM
Now-without agreement—follow completion date Consideration 450000
If written agreement exists—-follow agreement date 1st 4/7/18 3/7/19 (-) Permitted Expenses Enhancement cost;extension 30000
2nd 4/7/19 3/6/20 Legal expenses to defend the title 10000
Acquisitions date 4/7/2018 3rd 4/6/20 3/6/21
Disposal date 18/7/2023 4th 4/6/21 3/6/22 (-) Incidental costs Advertising 1000
RPGT RATE 0% 5th 4/6/22 3/6/23 Legal expenses 5500
(6th year) 6th 4/6/23 3/5/24 Agent's commissions 9000 -55500
394500

Gain subject RGPT 112590 (-) Acquisitions Price Nil 0

RGPT PAYABLES (0%*112590) 16888.5
Chargeable Gain 394500

Question 7 RM Rm (-) Schedule 4 Exemptions

Chargeable Gain 180,000 RM10000 10000
10% of chargeable gain 39450
(-) Schedule 4 Exemption Whichever is higher -39450
RM 10000*2/10 2000
Or 10% of Chargeable Gain (10% of 180,000) 18000 Gains subject to RPGT 355050
RGPT PAYABLES (355050 *0%) (More than 6 years) 0
Whichever is higher -18000

Gain subject RGPT for the 2 acre of lands 162,000 Question 12

(I)The gift of house of Brian to Barbara represent the transfer from husband to wife,which is a no gain
no loss transaction As the disposer (donor ) is a Malaysia citizen.
Question 8 Assets1 Assets2
Acquisitions Date Sept 20 May 19 The disposal price of Brian shall deemed equal to acquisitions price, therefore chargeable gain shall be
Disposal Date Dec 23 Oct 23 zero and subsequently there shall be no RPGT liability from the transaction.
RGPT 20%(4th year) 15%(5th year)
RM RM RM RM (ii)Barbara's RPGT COMPUTATION FOR YA2023
DISPOSAL PRICE Acquisitions date 3 Mac 2019
Consideration (Received) 240000 330000 Disposal date 12 Dec2023
(-) Incidental costs -6000 -10000 RPGT Rate 15% (5 th year)
234000 320000 RM RM
Disposal price
Acquistions price Consideration received 490000
Consideration (paid) 150000 320000 (-)Incidental costs Agent fees -9800
(+) Incidental costs 24000 40000
174000 360000 Disposal Price 480200

(-) Recoveries -20000 0 (-)Acquisitions price

Acquisitions price 154000 360000 Consideration paid by Brian 350000
-154000 -360000 6000
Chargeable Gain/ Allowable loss 80000 -40000 (+)Incidental costs of Brian Stamp duty 356000
(-) Allowable loss from other property -40000 Use to set off
Gains subject to real property gain tax 40000 Chargeable gain of (-)Recoveries of Brian Compensation -18000
RGPT PAYABLES (20%* 40000) 8000 Subsequent disposal Acquisitions price paid by Brian 338000

(+)Permitted Expense incurred by Brian Extension 68000

Question 9 Defending title 5400
Shop house 411400
Disposal Price RM RM
Consideration 340,000 (-)Recovery of wife Forfeited Deposit -28000
(-) Permitted Expenses Advertising -300
 339,700 Acquisitions price -383400
(-) Acquisition price
Consideration (Paid) 400,700 Chargeable Gain 96800
(+) Incidental cost Quit rent & assessment 0 (-) Schedule 4 Exemptions
400,700 -400700 RM10000 10000
Chargeable Gains /Allowable-Loss -61,000 10% of chargeable gain 9680
Whichever is higher -10000

Land Gains subject to RPGT 86800

Disposal Price RM RM RGPT PAYABLES (15%* 86800) 13020
Consideration 308,000
308,000
(-) Acquisition price
Consideration (Paid) 138,000
-138000
Chargeable Gains 170,000
(-) Allowable loss from other property -61000
Gains subject to real property gain tax 109,000
RGPT PAYABLES (15% *109000) 16350

Acquisitions date 6 June 2018

Disposal date 5 May 2023
RPGT RATE 15%
(5th year)

Past year Question

JNH SDN BHD -RGPT FOR YA 2018 RM RM

Disposal consideration (market value of asset received from Nurul) 300000

Less: Permitted expenses – repainting 0
Less: Incidental costs – valuation report fees -1000
299000
Disposal price
(-) Acquisitions price
Acquisitions considerations 90000
(+) Incidental costs Stamp duty 2000

(-) Recoveries Compensation -3000

-89000
Chargeable gain 210000

RGPT RATE (10%* 216000) 21000

SST
Question 1
Taxable Period January to February 2022
Due date 31 March 2022 (not later than the end of the following month)

QUESTION 2
The sales value of taxable goods for the purpose of sales tax shall be the normal selling price Rm 230,000
as transaction being to a connected person.
Therefore,market value is used to determine value subject to sales tax rather than the actual transaction price.

Disposal of goods without consideration such as gift and donation, market value/ normal selling
price shall be used as sales value to determine the sales tax.
Therefore,the sales tax shall be calculated based on normal selling price of RM10800.

(B) The amount of sales tax paid by Subco to RMC on the defective goods can be recovered provided a credit
note is issued and the goods has not been subsequently sold. The reduction of sales tax would be claimable in the form of
sales tax deductions. ( ie deduct against sales tax payables in the taxable period which CN was issued.
Any utilised deductions can be carry forward to set off with sales tax payables in upcoming period.
However, no refund would be given.

(C) Sub co is required to submit its sales tax return and pay for sales tax not later than last day of following month
from the taxable period.
Therefore,Subco is required to submit return and pay sales tax by 31 May 2022 for taxable period
1 March 2022 to 30 Apr 2022.

Question 4
(A) Sales Tax Payables =3000 (Rm30000*10%)

(B)Taxable period= 1 March 2022-30 Apr 2022

Due date by 31 May 2022
%
1st 30 days 1 June to 30 June 2022 10
2nd 30 days 1Jul to 30 July 2022 15
31 July to 29 August 2022 15
40
Penalty 3000* 40% 1200

(C) Prosecution for the offence may be instituted against taxable person who failed to pay the
amount of sales tax & penalty within 90 days from the due date.

Question 6 RM
Value to custom duty purposes 43000
(+) Import duty 30% *43000 12900
55900
(+) Excise duty 10% *55900 5590
Value for sales tax purposes 61490

Sales tax 10% 6149

Question 7 RM
Purchase price 1,500,000
(+)insurance 32500
(+) Freight 17500
Value for custom duty purposes 1,550,000

(+) Import duty (20%) (1550,000*20%) 310000

Value subject to sales tax 1,860,000

Sales tax (10%) (1860,000*10%) 186000

Drawback of sales tax (1860,000*60%) 1116000

(Only 60% exported)

Export 10 Sept 2022

Drawbacks 9 Dec 2022

Question 8 RM
Sales tax paid (full invoice) 40000
(-) Portion of sales tax recovered from customer
(Total sales tax * partial payment/ full invoice value) -24000
(40000*264000/440000)

Claimed for refund 16000

Question 9
Recovery of bad debts Rm88000
(Total sales tax * Partial payment / FULL INVOICE)
(40000* 88000/440000) Portion of ST out of RM 88k 8000
recoveries
Repayment of sales tax 8000

Question 10
Service tax is chargeable on the food and drinks provided as it represents taxable person who provided the taxable
service.A 6% service tax shall be applicable on market value of Rm 2200 as the value of service shall be based on
selling price in ordinary course of business.

Question 11
(A) Registration of services tax
A person who provide taxable services in Malaysia is liable to registered for services tax not later the end of the following
month.

Historical Method
The total value of his taxable services in that month and the 11 months immediately preceding the month has exceeded
prescribed threshold of Rm 500,000.

Future Method
The total value of the taxable services in that month and 11 month immediately succeeding the month has exceeded
prescribed threshold.

(B) Registration of service tax By end of the following month , 31 January 2023.

Effective date for registration for services tax, 1 February 2023

Question 12 Star plus Service SDN BHD

Taxable period- July- August 2022

Submission of service tax return & payment of service tax

=same due date at 30 September 2022

Question 14 Question 17 RM
(I) The taxable period to account for services tax 1 November 2020 Advertisement 280000
(+) Travelling costs 4500
(II) Service 100% 30000 (+) Reimbursement 1500
Service Tax 6% 1800 Value subject to service tax 286000
Total taxable service to SMT 106% 31800 (+) 6 % of service tax 17160
303160
(+) Disbursement: Consultancies 6890
*Amount of service tax =31800*6/6 310050
= 1800 (B) Responsibility of a registered person in relation of collection & recovery of service tax

Question 15 RM *A registered person who provide the taxable services is required to issue an invoice to his customers
Service tax paid ( full amount) 1800 in respect of any transaction relating to the provision of taxable services.

(-)Portion recovered from customer * Submit the service tax return (Form SST-02) not later than the end of the following month at the end of
taxable period.
Whole service tax * amount received/ total value invoice
* Pay the service tax not later the end of the following month from the end of the taxable period
RM1800* 25800/31800 -1460
* Every taxable person is required to keep up to date complete and true record covering all transactions
Relief of service tax from bad debts 340 relate to services tax for a period of 7 years from the latest date which the record relate.

Question 16 Question 18 RM
Recovery of bad debts Rm6000 Purchase price 346000
(Total service tax * Amount Received / FULL INVOICE)/ (+)Freight 6920
(1800* 6000/31800) 340 (+) Insurance 7228
Value for custom duty purposes 360148
Repayment of sales tax 340 (+) Import duty (15%) 54022

Value subject to sales tax 414170

Sales tax(10%) 41417