malaysia tax

Teras Tools Sdn. Bhd. is a company that produces kitchen and gardening appliances and tools. Currently, the business obtained the components for its products from various suppliers. In 2018, Teras found out that several items of a component from its suppliers did not meet its requirements. It made a claim against the supplier. After some discussions and lengthy negotiations, finally the supplier admitted and paid Teras Tools a sum of RM67,000. In the same year, the company also received a subsidy from Government, RM400 per employee. This payment was received with the purpose to subsidize companies for each handicapped person employed them. As Teras Tools had employed 20 handicapped persons in 2018, it received a subsidy of RM8,000 in a lump sum by the year end. Required: States, with reasons whether the receipts of RM67,000 and RM8,000 are liable to income tax