150 Individual Income Tax Rates - YA2020 Rate Tax Chargeable Income (RM) % (RM) On the First 5,000 0 Next 15,000 On the First 20,000 150 Next 15,000 3 450 On the First 35,000 600 Next 15,000 8 1,200 On the First 50,000 1,800 Next 20,000 14 2,800 On the First 70,000 4,600 Next 30,000 21 6,300 On the First 100,000 10,900 Next 150,000 24 36,000 On the First 250,000 46,900 Next 150,000 24.5 36,750 Company with paid up capital more than RM2.5m 24% Company with paid-up capital of not more than RM2.5 million and with annual sales of not more than RM50 million On first RM600,000 17% Subsequent Balance 24% Non-resident company 24% Trust body (resident or non-resident) 24% 5 UBAT3123/UBAT3124 ADVANCED TAXATION Stamp duty Rate % Sale of property For every RM100 or part thereof. On the first RM100,000 On the next RM400,000 On the excess over RM500,000 1 2 3 Sale of shares On every RM1,000 or part thereof 0.3 Real Property Gains Tax Rates Company Indiv 1 Indiv 2 Disposed within 3 years 30% 30% 30% Disposal in 4th year 20% 20% 30% Disposal in 5th year 15% 15% 30% Disposal in 6th year and thereafter 10% 5% 10% Indiv 1 - An individual who is a citizen or a permanent resident of Malaysia. Indiv 2 - An individual who is neither a citizen nor a permanent resident of Malaysia. a) ABC Plastics Sdn Bhd (ABC) has been manufacturing plastic furniture since 2010. The company is planning to expand its manufacturing activity. The following details the projected capital expenditure for 4 years as follows: 2021 2022 2023 2024 RM 000 RM 000 RM 000 RM 000 800 400 Land 1,000 2,000 Factory Building (Note 1) 3,000 1,500 Office building (Note 2) 2,500 Injection molding machines 800 800 Casting machines 400 Replacement of printing machine 110 Office furniture and equipment 380 120 Note 1: Constructed factory was completed and used in 2022 Note 2: Office building was acquired and used in 2021 Adjusted income / (loss) Capital allowance 2021 2022 2023 RM 000 RM 000 RM 000 (500) 3,000 3,600 1,200 1,600 1,400 2024 RM 000 5,200 2,000 Required: 1) ii) Advise ABC on the tax incentive available and the conditions applicable to such incentive. (6 marks) Compute the amount of allowance deductible against the statutory business income of ABC (based on the identified tax incentive) and the chargeable income for the years of assessment 2021 to 2024. Show workings where necessary. (21 marks) 150 Individual Income Tax Rates - YA2020 Rate Tax Chargeable Income (RM) % (RM) On the First 5,000 0 Next 15,000 On the First 20,000 150 Next 15,000 3 450 On the First 35,000 600 Next 15,000 8 1,200 On the First 50,000 1,800 Next 20,000 14 2,800 On the First 70,000 4,600 Next 30,000 21 6,300 On the First 100,000 10,900 Next 150,000 24 36,000 On the First 250,000 46,900 Next 150,000 24.5 36,750 Company with paid up capital more than RM2.5m 24% Company with paid-up capital of not more than RM2.5 million and with annual sales of not more than RM50 million On first RM600,000 17% Subsequent Balance 24% Non-resident company 24% Trust body (resident or non-resident) 24% 5 UBAT3123/UBAT3124 ADVANCED TAXATION Stamp duty Rate % Sale of property For every RM100 or part thereof. On the first RM100,000 On the next RM400,000 On the excess over RM500,000 1 2 3 Sale of shares On every RM1,000 or part thereof 0.3 Real Property Gains Tax Rates Company Indiv 1 Indiv 2 Disposed within 3 years 30% 30% 30% Disposal in 4th year 20% 20% 30% Disposal in 5th year 15% 15% 30% Disposal in 6th year and thereafter 10% 5% 10% Indiv 1 - An individual who is a citizen or a permanent resident of Malaysia. Indiv 2 - An individual who is neither a citizen nor a permanent resident of Malaysia. a) ABC Plastics Sdn Bhd (ABC) has been manufacturing plastic furniture since 2010. The company is planning to expand its manufacturing activity. The following details the projected capital expenditure for 4 years as follows: 2021 2022 2023 2024 RM 000 RM 000 RM 000 RM 000 800 400 Land 1,000 2,000 Factory Building (Note 1) 3,000 1,500 Office building (Note 2) 2,500 Injection molding machines 800 800 Casting machines 400 Replacement of printing machine 110 Office furniture and equipment 380 120 Note 1: Constructed factory was completed and used in 2022 Note 2: Office building was acquired and used in 2021 Adjusted income / (loss) Capital allowance 2021 2022 2023 RM 000 RM 000 RM 000 (500) 3,000 3,600 1,200 1,600 1,400 2024 RM 000 5,200 2,000 Required: 1) ii) Advise ABC on the tax incentive available and the conditions applicable to such incentive. (6 marks) Compute the amount of allowance deductible against the statutory business income of ABC (based on the identified tax incentive) and the chargeable income for the years of assessment 2021 to 2024. Show workings where necessary. (21 marks)