malaysian taxation

find mr abu and ms siti tax computation and mr abu rental income tax

CASE STUDY Abu bin Bakar aged 49 years old was the lecturer for Best College under the trade name Best College Sdn Bhd. In 2018, he had a serious heart attack while teaching in the class. On the advice of his doctor not to take more stress from students, he finally retired on 30 April 2019 after working there for the past 18 years. He had the use of a company car when attached with the college which costs RM180,000 when it was new. His employer presented him with a gold ring worth RM 1,800 in appreciation of his service to the college as well as gratuity of RM120,000 upon his retirement from the college. Using the gratuity money, Mr Abu paid RM75,000 as a down-payment to buy a second hand apartment to collect rentals on 1 May 2019. The balance of the gratuity was invested in real estate investment trust (REITs) and some unit trusts with Malaysian financial institutions as well as providing loan of RM18,000 to his beautiful and talented fellow lecturer friend to start her studio to do active social media branding business on Youtube, Instagram and TikTok. Siti binti Kassim, on the other hand, is the hardworking wife of Mr Abu. She works as an executive in one of the major publication house in town. During her free time, she composes Malay songs and nursery rhymes for children cartoon animation under some musical labels. She also had just completed her master degree in music which started in 2016 and completed in 2019. Together, they have 3 children and the details of their children are as follows: 1. Delilah, 16 years old and studies in local secondary school. 2. Baharuddin, 20 years old, is studying accounting at Best College. He is physically challenged and is registered with Social Welfare Malaysia, 3. Nurul, 26 years old, is studying post graduate education in media communication. She has been married in August 2019. Mr Abu and Madam Siti approach you to get help with their tax submissions and have provided the following information in respect of 31 December 2019: Siti binti Kassim 56,400 Abu bin Bakar 48,000 7,000 5.280 79 945 810 1,440 20,400 Salary Value of the car EPF - Employee's portion SOCSO - Employee's portion Unit trust income distribution from Public Mutual REIT income distribution from Pacific Mutual Interest on loan (social media studio business) Annuity receipts from Prudential Insurance Berhad Royalties from music composition works Life insurance premium paid Zakat payments Donations to approved institutions 6,204 237 810 5,040 480 960 33,600 1,080 564 1.128 3.000 6,600 9,600 14,400 Education insurance premium for Delilah Purchase of special wheelchair for Baharuddin Medical expenses (continuing follow-up treatment) Medical expense for Abu's parents Parental care for Siti's mother - staying together Gym membership fees Purchase of educational books and magazines Purchase of smart phone Tuition fees to pursue master degree in music 6,000 1,500 1,800 1.200 4,680 30,000 3,080 After going through the provided information and documentations, it was found that everything mentioned above were supported by proper receipts and invoices except for Mr Abu's books and magazines receipt. Out of the RM3,080, only RM960 of the purchases of books/magazines were managed to be found by Mr Abu to be supported with receipts. Further inquiries also informed you that both Mr Abu and Madam Siti parents are indeed already very old and are 75 years old and above. They have various chronic diseases and are monitored by registered medical doctors. Mr Abu bin Bakar then provided the details of his purchased apartment. Like the above mentioned, he bought an apartment at a reputable university township in Kuala Lumpur worth around RM250,000 to collect rental which was later rented out to a family from 1 June 2019. The following are the details regarding the house up to 31 December 2019. RM Rental collected 5,600 Down deposit for the house - paid on l' May 2019 75,000 Tenancy agreement fee Interest on housing loan 1,750 Maintenance fee 630 Quit rent and assessment fee Plumbing and electrical work 1,080 Replace old sofa 2,160 Repair and replace motor parts for air-conditioners 240 208 960 Required: Compute the tax payable, if any, by Abu bin Bakar and Siti binti Kassim for the year of assessment 2019. Assume both of them does not elect for joint assessment. Where applicable, the computation should state the amount or "Nil". Provide answers to the nearest Ringgit Malaysia (omit the cents). CASE STUDY Abu bin Bakar aged 49 years old was the lecturer for Best College under the trade name Best College Sdn Bhd. In 2018, he had a serious heart attack while teaching in the class. On the advice of his doctor not to take more stress from students, he finally retired on 30 April 2019 after working there for the past 18 years. He had the use of a company car when attached with the college which costs RM180,000 when it was new. His employer presented him with a gold ring worth RM 1,800 in appreciation of his service to the college as well as gratuity of RM120,000 upon his retirement from the college. Using the gratuity money, Mr Abu paid RM75,000 as a down-payment to buy a second hand apartment to collect rentals on 1 May 2019. The balance of the gratuity was invested in real estate investment trust (REITs) and some unit trusts with Malaysian financial institutions as well as providing loan of RM18,000 to his beautiful and talented fellow lecturer friend to start her studio to do active social media branding business on Youtube, Instagram and TikTok. Siti binti Kassim, on the other hand, is the hardworking wife of Mr Abu. She works as an executive in one of the major publication house in town. During her free time, she composes Malay songs and nursery rhymes for children cartoon animation under some musical labels. She also had just completed her master degree in music which started in 2016 and completed in 2019. Together, they have 3 children and the details of their children are as follows: 1. Delilah, 16 years old and studies in local secondary school. 2. Baharuddin, 20 years old, is studying accounting at Best College. He is physically challenged and is registered with Social Welfare Malaysia, 3. Nurul, 26 years old, is studying post graduate education in media communication. She has been married in August 2019. Mr Abu and Madam Siti approach you to get help with their tax submissions and have provided the following information in respect of 31 December 2019: Siti binti Kassim 56,400 Abu bin Bakar 48,000 7,000 5.280 79 945 810 1,440 20,400 Salary Value of the car EPF - Employee's portion SOCSO - Employee's portion Unit trust income distribution from Public Mutual REIT income distribution from Pacific Mutual Interest on loan (social media studio business) Annuity receipts from Prudential Insurance Berhad Royalties from music composition works Life insurance premium paid Zakat payments Donations to approved institutions 6,204 237 810 5,040 480 960 33,600 1,080 564 1.128 3.000 6,600 9,600 14,400 Education insurance premium for Delilah Purchase of special wheelchair for Baharuddin Medical expenses (continuing follow-up treatment) Medical expense for Abu's parents Parental care for Siti's mother - staying together Gym membership fees Purchase of educational books and magazines Purchase of smart phone Tuition fees to pursue master degree in music 6,000 1,500 1,800 1.200 4,680 30,000 3,080 After going through the provided information and documentations, it was found that everything mentioned above were supported by proper receipts and invoices except for Mr Abu's books and magazines receipt. Out of the RM3,080, only RM960 of the purchases of books/magazines were managed to be found by Mr Abu to be supported with receipts. Further inquiries also informed you that both Mr Abu and Madam Siti parents are indeed already very old and are 75 years old and above. They have various chronic diseases and are monitored by registered medical doctors. Mr Abu bin Bakar then provided the details of his purchased apartment. Like the above mentioned, he bought an apartment at a reputable university township in Kuala Lumpur worth around RM250,000 to collect rental which was later rented out to a family from 1 June 2019. The following are the details regarding the house up to 31 December 2019. RM Rental collected 5,600 Down deposit for the house - paid on l' May 2019 75,000 Tenancy agreement fee Interest on housing loan 1,750 Maintenance fee 630 Quit rent and assessment fee Plumbing and electrical work 1,080 Replace old sofa 2,160 Repair and replace motor parts for air-conditioners 240 208 960 Required: Compute the tax payable, if any, by Abu bin Bakar and Siti binti Kassim for the year of assessment 2019. Assume both of them does not elect for joint assessment. Where applicable, the computation should state the amount or "Nil". Provide answers to the nearest Ringgit Malaysia (omit the cents)