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Personal Reliefs and Rebates

1. The document provides information on computing tax payables for individuals under separate or joint assessment in Malaysia, including categories of income and allowable reliefs. 2. It presents a case of Mustafa and Norashikin's incomes and asks to compute their tax payable under joint and separate assessments, providing their employment incomes, zakat paid, and medical/education expenses. 3. A second case provides extensive information on Mr. Smith's income in Malaysia as an expatriate, including salary, bonuses, allowances, education expenses, donations, and assets. It asks to compute his aggregate income, total income, chargeable income and tax payable for YA 2013 based on this information.

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Jong Hannah
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79 views3 pages

Personal Reliefs and Rebates

1. The document provides information on computing tax payables for individuals under separate or joint assessment in Malaysia, including categories of income and allowable reliefs. 2. It presents a case of Mustafa and Norashikin's incomes and asks to compute their tax payable under joint and separate assessments, providing their employment incomes, zakat paid, and medical/education expenses. 3. A second case provides extensive information on Mr. Smith's income in Malaysia as an expatriate, including salary, bonuses, allowances, education expenses, donations, and assets. It asks to compute his aggregate income, total income, chargeable income and tax payable for YA 2013 based on this information.

Uploaded by

Jong Hannah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PERSONAL RELIEFS AND REBATES

COMPUTATION OF TAX PAYABLES FOR INDIVIDUAL

ASSESSMENT SEPARATE JOINT


RM RM RM RM
Husband Wife Husband Wife
Section 4 (a)
Business Income
Section 4 (b)
Employment Income
Sec 13(1)(a)
Sec 13(1)(b)
Sec13 (1)(c)
Sec 13(1)(d)
Sec 13(1)(e)
Section 4 (c)
Dividend, Interest
Section 4 (d)
Rental, Royalty
Section 4 (e)
Pension, Annuities
Section 4 (f)
Other Income
AGGREGATE INCOME
Less: current year business loss
Less: Approved donation (cash only)
TOTAL INCOME XX XX XX XX
COMBINED TOTAL INCOME XXX
(Husband + Wife)

Less: Reliefs
(refer to the personal reliefs)

CHARGEABLE INCOME
Tax on the first RM…
Tax on the next RM...

TAX CHARGED
Less: Rebate
Alimony (former wife) 400 -
Chargeable income less than RM35,000 400 400 800
Zakat Actual paid Actual paid Actual paid
TAX PAYABLE
Reliefs: please refer to IRBM website http://www.hasil.gov.my/bt_goindex.php?
bt_kump=5&bt_skum=1&bt_posi=3&bt_unit=1&bt_sequ=1&bt_lgv=2
Question 1
Mustafa and Norashikin have income from employment of RM80,000 and RM60,000
respectively in 2019. Norashikin elects for her income to be jointly assessed with her
husband. During the year, Mustaffa paid RM800 for zakat. Norashikin incurred books and
magazines amounted to RM2,200 and medical examination expense of RM5,000. They have
one disabled child.
(a) Compute tax payable for joint assessment, YA2019.
(b) Using the information above, compute tax payable by assuming the individual is on
separate assessment.

Question 2
Mr. Smith is a British citizen and gained resident status in Malaysia. He is working with a
multinational company which is based in Shah Alam. The following information was
provided in his return for the year 2020:
Salary per month RM 30 000
Leave pay RM 60 000
Bonus for the year 2020 RM 60 000
Entertainment allowance per month RM 5 000
Travelling allowance per month RM 3 000
Leave passage to the United Kingdom for family RM 40 000

Mr Smith incurred RM14,000 on entertainment expenditure on official duties. The travel


allowance is for official duties. The company provided a bungalow where the rental is
RM5,000 (including RM1,000 for furnishings). Furthemore, the company provide a luxury
car costing RM360,000 when new for Mr.Smith.

Mrs Smith is a housewife and they have three children. The first child age 22 years is
persuing a degree in Medicine in Glasgow, UK. Mr. Smith contributed RM50,000 towards
her upkeep during the year. The second child is continuing a degree course in accounting at
Nottingham University in Malaysia and Mr Smith incurred RM60,000 during the year. The
third child is 16 years old and he is attending the international school located in Petaling Jaya.

Mr.Smith persuing a post graduate degree in Master of Accountancy on part time basis at a
private university and he incurred fees amounting to RM18,000 in year 2020. During the
year, Mr.Smith incurred medical expenses of RM45,000 and his employer paid RM40,000 of
the expenses.

RM10,000 cash donation paid to an approved organisation. Mr.Smith also pays life assurance
premium of RM50,000 per annum. Mr.Smith bought a laptop for himself for RM5,600 and
sports equipment for the family amounting to RM4,200. Books and magazines were bought
with total of RM4,600 during the year.

Required:
Compute the aggregate income, total income, chargeable and income tax payable by
Mr.Smith for the year of assessment 2013.

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