For the year ended 31 December 2019, Encik Remmy received annual salary of RM360,000. Besides, he received the following employment income and benefits from the
For the year ended 31 December 2019, Encik Remmy received annual salary of RM360,000. Besides, he received the following employment income and benefits from the company:
• Bonus equivalent to 1 month salary.
• Entertainment allowance RM500 per month.
• Medical and dental care RM12,000 for him and family.
• Fully furnished bungalow house to reside.
The rental is RM4,000 (RM500 for furniture). His wife is not working, and the couple has eight children. Three of them are doing bachelor programmes and another five are under 18 years old. His youngest son is disabled, and he sent him to a kindergarten with a monthly fee of RM800. Encik Remmy paid RM20,000 for zakat on income and he saved RM16,000 in the SSPN scheme for his children. He also contributed RM33,000 in EPF and paid educational takaful premium RM24,000 a year.
As the only child, Encik Remmy also taking care of his parents and paid RM8,000 for their medical expenses. In 2019, he bought books and journals worth RM2,500, and paid internet subscription of RM160 per month. He also contributed RM400 for SOCSO. Every month, his tax deduction amounted to RM1,500 of his salary.
Calculate Encik Remmy taxable income and tax payable for the year 2019 (show all your workings).
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