Rashid is a 55 year old Indonesian citizen settled in the island of Penang under the ‘Malaysia: My Second Home’ programme since 2012. Rahid is a well-known author who likes the Malaysian food and climate. His wife, Haslinda is a Malaysian citizen and she is currently a homemaker. She opted for early retirement from the government service due to ill-health and receives a pension of RM2,400 a month.

On 12 February 2016, Rashid brought his savings into Malaysia which was equivalent to RM6 million. He bought a condominium in Gurney Drive, Penang for RM1.3 million. He also purchased shares in public-listed companies and unit trusts in Malaysia, US and Australia. He purchased an exclusive office unit in Gelugor, Penang with an existing tenant. The office unit cost him RM990,000.

Rashid declared the following income to the Inland Revenue Board of Malaysia (IRBM) for the basis year 2019:

i. Business Income
Rashid is in a partnership, sharing equally the profits and losses with a Malaysian in a Indonesian restaurant business in Penang. His statutory income from the partnership business is RM123,000.

ii. Dividend income
• Single tier dividend from Nestle Bhd. of RM20,000 was declared in December 2018 but received on 6 January 2019.
• Dividend income equivalent to RM129,000 from share investments in the Australia remitted to Malaysia during the year.

iii. Income from unit trust
A sum of RM40,000 distributed from BHP Royal Unit Trust, US was received during the year. The income was remitted to Malaysia from Singapore on 5 December 2019.

iv. Royalty income
Royalty income of RM115,000 was received in respect of writing a novel, it was paid by a local publisher. He incurred RM12,500 on research and he paid RM15,000 for editing his manuscript during the year 2019.

v. Rental income

Rental income was received from an office unit in Penang which was rented out at RM5,000 per month for the last two years to a travel agent. It became vacant on 1 May 2019. It was rented to a new tenant after repairs on 1 September 2019 for RM6,000 per month. For the basis year 2019, Rashid incurred the following expenses towards the office unit.

Interest on bank loan of RM390,000 --- RM13,000
Quit rent and assessment ---RM2,850
Fire insurance ---RM3,250
Repairs ---RM6,000
Installation of burglar alarm ---RM3,500
Advertisement cost to find a new tenant---RM 2,400
Service charges for building maintenance ---RM 4,800

vi. Rashid has four children. The first child Ahmad, aged 22, is pursuing an engineering degree at the Multimedia University. The second child, Farah, aged 19, is pursuing medicine at Glasgow University. Her father spent RM150,000 towards her fees and accommodation. She received RM50,000 from the trust fund set up by her grandfather. The third child Rasnah, aged 15, is studying at a government secondary school. A fourth child, named Nordin was born during the year.

vii. Rashid pursued a post-graduate Masters degree in Business Administration on a part time basis at University Science Malaysia and he incurred fees amounting to RM26,000 in 2019.

viii. Haslinda, suffering from cancer, underwent surgery and chemotherapy at a private medical centre in June 2019. Rashid incurred medical expenses of RM104,000 during the year.

ix. He paid life assurance premiums of RM16,000.

x. Rashid bought a laptop computer for himself for RM3,600 and a treadmill for the family amounting to RM3,800. He bought books and magazines for the family for RM920. Rashid has the necessary supporting documentation for these expenditure.

xi. His mother, who is 89 years old, lives with him and she has no independent income of her own.

xii. He contributed RM1,900 in Zakat to fulfil his religious duty.

Required:

Compute the total income, chargeable income and tax payable of Rashid for the year of assessment 2019 under joint assessment, assuming Haslinda is the one who elected to be assessed with her husband’s income.