Norman and Sarah who are married, are both Malaysian tax residents. They have an eight-year-old daughter, Misha. Details of Norman s employment income and amounts expended for the year of assessment (YA) 2020 are as follows:

Salary for the year of RM60,000.

Performance incentive of RM2,000 for YA 2020, paid on 3 March 2021.

The use of a new car costing RM40,000 provided to him for the entire year without fuel.

Social security contributions (SOCSO) of RM8,000.

The minimum employment provident fund (EPF) contributions of 11% were deducted from his salary.

A cash donation of RM25,000 made to Perpustakaan Negara.

Sarah operates sole proprietorship cake house business. She also rents out a property located in Malaysia which she holds for investment purposes.

The following details relate to Sarah in respect of Year of Assessment (YA) 2019 and YA 2020:

Extracts from her tax computation for YA 2019 are as below:

None of the losses were utilised during YA 2017.

Details of her business income for YA 2020 are:

Her rental income and expenses for YA 2020 comprises:

She received interest income of RM900 (translated from Singapore Dollars) from a fixed deposit placed in Maybank Singapore.

Payments made by Sarah in 2020 were:

Norman and Sarah have agreed that Sarah would claim the child relief for Milan.

The couple elect for separate tax assessment.

Required:

Compute the income tax payable for the year of assessment 2020 by:

Norman

[20 marks]

Sarah

[30 marks]