Question 3

Alisa, a resident, is employed as an engineer. On 30 September 2018, Alisa married Shah, who is certified as disabled by the relevant authorities and does not have any income. Alisa has a 21-year-old married daughter from a previous marriage and an 80-year-old mother who did not receive any income during 2018.

Details of Alisas employment income and benefits, and other income and payments for the year ended 2018 are as follows:

Income and benefits from employment:

• Monthly salary of RM20,000
• Monthly entertainment allowance of RM2,000
• A cash award of RM3,000 for eight-year long service in the company
• Monthly parking allowance of RM100
• Utility bills for the year in the name of the company of RM12,000, paid by the company On 1 July 2018, the company provided a car and incurred the following expenses:
• Cost of the new car of RM180,000
• Maintenance service of RM2,300
• Fuel of RM2,100
• The company employed a driver at a monthly salary of RM2,500 from 1 October 2018

Other income:

• Interest income of RM1,900 from an Australian foreign currency account
• Royalties of RM33,000 from the translation of a Japanese technical journal into the national language as requested by the Ministry of Education

Payments/expenses:

• Entertainment expenses incurred on companys clients of RM9,000
• Zakat payment of RM5,000
• EPF contribution of RM26,000
• Purchase of smart phone for RM5,000
• Gymnasium fees of RM3,000
• University fees for her daughters degree of RM11,000
• Cash donations of RM8,000 paid to a local approved charitable institution

Required:

Compute the income tax payable by Alisa for the year of assessment 2018.

Note: You should indicate by the use of the word nil any item referred to in the question for which no adjusting entry needs to be made, including any relief or rebate, in the tax computation.

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)

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