a. The average tax rate for Ali if his annual income is RM 106 800. (5 Marks) Income Bracket Tax Rates Income Tax owed Average Tax Rate RM0 RM20 000 0%

RM20 001 RM40 000 14% RM40 001 RM60 000 21% RM60 001 and above 24%

b. The marginal tax rate for Ali if his income has increase to RM 114 000. (5 Marks) Income Bracket Tax Rates Income Tax owed Marginal Tax Rate RM0 RM20 000 0%

RM20 001 RM40 000 14% RM40 001 RM60 000 21% RM60 001 and above 24%