Khai, a mechanical engineer with UOE Sdn Bhd, retired from the company on 30 November 2018 upon reaching his compulsory retirement age and received gratuity of RM60,000. He has been working with the company since 28 December 2011. His employment income for the year 2018 is as follows:

	RM
Salary (gross)	99,000
Entertainment allowances (50 percent of the allowances were used for official purpose)	10,000
Travelling allowances (20 percent of the allowances were used for private purpose) Bonus	11,000
- for the year ended 31 December 2018 paid in 2018	9,000
- for the year ended 31 December 2017 paid in 2018	8,000

Other benefits received by Khai are as follow:

1. Khai was provided with four (4) holiday trips to various local resorts in Sabah, each costing at RM2,000, and addition special trip to Hong Kong costing at RM3,000. For all trips, both local and oversea, 20 percent of the costing is to cover cost of meals and accommodation.

2. Khai was being provided with motorcar and fuel for his personal use. During the period of service in 2018, the annual value of benefits was RM3,600 and RM1,200 respectively. UOE Sdn Bhd also provided him a driver with the salary of RM600/month.

3. Gardener provided and paid by UOE Sdn Bhd at RM300 per month. Additionally, UOE employed a domestic servant solely for his familys use at RM700 per month from 1 April 2018. This cost was reimbursed by UOE Sdn Bhd.

4. UOE Sdn Bhd rented a fully furnished four-room bungalow in Jitra for RM2,400 per month (inclusive of furniture at RM400) for Khai. Two of the rooms in the house were not used by Khai and his family but reserved for the use of UOE Sdn Bhds clients when they were in Jitra. Khai was required to pay a nominal rent of RM500 per month to the employer.

For the year of assessment 2018, determine Khais adjusted employment income.

Income Tax Rate Year of Assessment 2018

Chargeable income calclution rate %

Chargeable income	calclution	rate %	TAX RM
0,5000	ON FIRST 2500	0	0
5001-20000	On first 5000 Next 15000	1	First 0 Next 150
20001-35000	On first 20000 Next 15000	3	First 150 Next 450
35001-50000	On first 35000 Next 15000	8	First 600 Next 1200
50001-70000	On first 50000 Next 20000	14	First 1800 Next 2800
70001-100000	On first 70000 Next 30000	21	First 4600 Next 6300
100001-250000	On first 100000 Next 150000	24	First 10900 Next 3600
250001-400000	On first 250000 Next 150000	24.5	First 46900 Next 36750
4000001-600000	On first 400000 Next 200000	25	First 83650 Next 50000
600001-1000000	On first 600000 Next 400000	26	First 133650 Next 104000
EXCEEDING 1000000	On first 1000000 Next rinngit	30	First 237650

Year of Assessment 2018

No. Individual Relief Types Amount (RM)

1 Self and Dependent 9,000

2 Medical expenses for parents OR Parent Limited 1,500 for only one mother Limited 1,500 for only one father 5,000 (Limited) OR 3000 (Limited)

3 Basic supporting equipment for disabled self, spouse, child or parent 6,000 (Limited)

4 Disabled Individual 6,000

5 Education Fees (Self) (i) Other than a degree at Masters or Doctorate level-for acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications; (ii) Degree at Masters or Doctorate level-for acquiring any skills or qualification 7,000 (Limited)

6 Medical expenses for serious diseases for self, spouse or child 6,000 (Limited)

7 Complete medical examination for self, spouse, child - 500 (Limited)

8 Lifestyle: (i) Purchase of books journals, magazines, printed newspaper and other similar publications (except banned reading materials) for self, spouse or child; (ii) Purchase of a personal computer, smartphone or tablet for self, spouse or child; (iii) Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (excluding motorized twowheel bicycles) and gym memberships for self, spouse or child; and (iv) Payment of monthly bill for internet subscription 2,500 (Limited)

9 Purchase of breastfeeding equipment 1,000 (Limited)

10 Net saving in SSPN's scheme (total deposit in year 2018 MINUS total withdrawal in year 2018) 6,000 (Limited)

11 Child care fees to a Child Care Centre or a Kindergarten 1000 (Limited)

12 Husband/Wife/Alimony Payments 4,000 (Limited)

13 Disable Wife/Husband 3,500

14 Ordinary Child relief 2,000

15 Each unmarried child of 18 years and above who is receiving fulltime education ("A-Level", certificate, matriculation or preparatory courses). 2,000

16 Each unmarried child of 18 years and above that: (i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatorycourses). (ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate). (iii) the instruction and educational establishment shall be approved by the relevant government authority. 8,000

17 Disabled child 6,000 Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities

18 Life insurance dan EPF INCLUDING not through salary deduction 6,000 (Limited)

19 Deferred Annuity and Private Retirement Scheme (PRS) - with effect from year assessment 2012 until year assessment 2021 3,000 (Limited)

20 Insurance premium for education or medical benefit INCLUDING not through salary deduction 3,000 (Limited)

21 Contribution to the Social Security Organization (SOCSO) 250 (Limited)