Based on Malaysia Taxation System Law

Based on Malaysia Taxation System Law

QUESTION 2 Ruslina works as a Chemical Engineer at City Sdn Bhd, a manufacturing company producing consumable products such as bio-soaps and detergent. Details of the income and benefit enjoyed as well as expenses incurred by Ruslina in 2019 are shown below: 1. Salary of RM9,500 per month (before 11% EPF deduction). 2. Bonus received in November 2019 amounted to RM18,000. 3. Entertainment allowance of RM600 per month. 4. Travelling allowance of RM1,000 per month. 5. Traditional medical treatment at an approved hospital costing RM650 was paid by the company. 6. Hotel accommodation was provided by her employer for the month of January 2019 at a cost of RM200 per day for 30 days. 7. From February 2019 onwards, the company provides a fully furnished house with a monthly rental of RM1,500 and fully paid by the company. 8. The services of a gardener employed by City Sdn. Bhd. with a monthly salary of RM400 were provided to starting February 2019. The gardener service was share with two other managers. 9. A personal computer worth RM3,000 for her personal use was received as a gift from her employer. 10. A reimbursement amounted to RM9,000 was made to cover wages of a maid employed by Ruslina. 11. The company provides a new car costing RM250,000 together with a driver in July 2018. The driver's salary of RM1,800 per month was paid by the company. 12. She was provided with short holidays to various local resort and a trip to Maldives by her employer, which incurred the following expenses: Cost of air fare RM Four local trips (per trip) 1,200 Maldives 10,400 Cost of meals and accommodation RM 900 13,600 13. Ruslina incurred RM12,000 on entertaining clients during the year and paid his employer a nominal rental of RM150 per month. Required: a Compute the employment income of Ruslina for the year of assessment 2019 indicating exempt where a benefit is exempted from tax. In your computation use the prescribed value method for benefits in kind. b. Explain to Puan Ruslina any TWO (2) circumstances under which compensation for loss of employment is exempted from tax according to the Income Tax Act 1967. C. Explain the conditions under which retirement gratuity is exempted from tax according to Income Tax Act 1967