Rate % 0 1 3 8 Individual Income Tax Rates YA 2018 to YA 2020 Chargeable Income Calculations (RM) 0 - 5,000 On the First 2,500 On the First 5,000 5,001 - 20,000 Next 15,000 On the First 20,000 20,001 - 35,000 Next 15,000 On the First 35,000 35,001 - 50,000 Next 15,000 On the First 50,000 50,001 - 70,000 Next 20,000 On the First 70,000 70,001 - 100,000 Next 30,000 On the First 100,000 100,001 - 250,000 Next 150,000 On the First 250,000 250,001 - 400,000 Next 150,000 On the First 400,000 400,001 - 600,000 Next 200,000 On the First 600,000 600,001 - 1,000,000 Next 400,000 14 Tax(RM) 0 0 150 150 450 600 1,200 1,800 2,800 4,600 6,300 10,900 36,000 46,900 36,750 83,650 50,000 133,650 104,000 21 24 24.5 25 26 24% 18% 24% Corporate Income Tax Rates Company with paid up capital more than RM2.5m Company with paid up capital not more than RM2.5m YA2018 On first RM500,000 chargeable income Subsequent balance YA2019 On first RM500,000 chargeable income Subsequent balance YA2020 (and with annual sales not more than RM50m) On first RM600,000 chargeable income Subsequent balance Non-resident Company Trust body (resident or non-resident) 17% 24% 17% 24% 24% 24% Real property gains tax (RPGT) rates (wef 1.1.2019) Disposal within 3 years Disposal in 4th year Disposal in 5th year Disposal in 6th year and thereafter Company 30% 20% 15% 10% Individuals Non-Citizen Citizen or PR & Non-PR 30% 30% 20% 30% 15% 30% 5% 10% Best Sdn Bhd (Best) closes its account annually on 31 December. In the year of assessment 2020, Best had the following sources of income. RM 350,000 (70,000) Business Source 1 Adjusted Income Business Source 2 Adjusted Loss Business Source 3 Japan Income (remitted to Malaysia in October 2020) Rental Adjusted Income 30,000 60,000 What is Best's aggregate income for the year of assessment 2020? Choose one answer. RM 340,000 RM 370,000 RM 440,000 RM 410,000 Breeze Sdn Bhd (Breeze) closes its account annually on 30 June. In the year of assessment 2020, Breeze made a donation of RM38,000 to an approved institution and had the following sources of income: Business Source 1 Adjusted Income Business Source 2 Adjusted Loss Dividends Rental Adjusted Income RM 200,000 (170,000) 130,000 260,000 What is Breeze's chargeable income for the year of assessment 2020? Choose one answer. RM 422,000 RM 420,000 RM 252,000 RM 460,000 Global Sdn Bhd has obtained a bank loan in January 2020. The monthly loan balances and investments financed by the loan are as follows Month ending January February March April May June July August September October November December Loan balances RM 600,000 600,000 600,000 600,000 600,000 600,000 400,000 400,000 400,000 400,000 400,000 400,000 Investments RM 300,000 300,000 300,000 300,000 300,000 300,000 200,000 200,000 200,000 200,000 600,000 600,000 The loan interest expense incurred for 2020 is RM9,600. What is the portion of interest expense that is restricted under section 33(2) of the ITA? Choose one answer. RM 5,600 RM 9,600 RM O (Nil) RM 6,400 Theresa is the owner and operator of Brains Sdn Bhd (Brains), a distributor of educational toys. Theresa wishes to pursue further studies and is looking to sell her business. Upon completion of her studies, Theresa plans to start another business. Brains has been experiencing losses for the past few years. Which of the following is true when Theresa sells her toys distribution business? 1. Unabsorbed capital allowances can be carried forward to be offset against the adjusted income of a new business. 2. Unabsorbed losses can be carried forward to be offset against future business income. 3. The transfer of trade debtors is not subject to income tax. 4. Retrenchment payments to employees are deductible as they are still incurred in the production of business income. Choose one answer. O 3 only 0 1, 2, and 3 All of the above 2 and 3 Mr Leong died domicile in Malaysia on 31 March 2020. He leaves behind his wife and two children aged 9 and 11. His income for the year 2020 is as follows: Business 1: Adjusted loss Business 2: Gross income Revenue expenses (includes executor fees RM12,000) Capital allowances Adjusted rental income Dividends (received on 2 March 2020) Interest from FD (received on 31 July 2020) RM RM 120,000 390,000 54,000 6,000 108,000 3,600 12,000 Assume personal relief of RM17,000. What is the chargeable income of Mr Leong for the year of assessment 2020? Choose one answer. RM 95,500 RM 96,400 RM 66,400 RM 65,500 Rate % 0 1 3 8 Individual Income Tax Rates YA 2018 to YA 2020 Chargeable Income Calculations (RM) 0 - 5,000 On the First 2,500 On the First 5,000 5,001 - 20,000 Next 15,000 On the First 20,000 20,001 - 35,000 Next 15,000 On the First 35,000 35,001 - 50,000 Next 15,000 On the First 50,000 50,001 - 70,000 Next 20,000 On the First 70,000 70,001 - 100,000 Next 30,000 On the First 100,000 100,001 - 250,000 Next 150,000 On the First 250,000 250,001 - 400,000 Next 150,000 On the First 400,000 400,001 - 600,000 Next 200,000 On the First 600,000 600,001 - 1,000,000 Next 400,000 14 Tax(RM) 0 0 150 150 450 600 1,200 1,800 2,800 4,600 6,300 10,900 36,000 46,900 36,750 83,650 50,000 133,650 104,000 21 24 24.5 25 26 24% 18% 24% Corporate Income Tax Rates Company with paid up capital more than RM2.5m Company with paid up capital not more than RM2.5m YA2018 On first RM500,000 chargeable income Subsequent balance YA2019 On first RM500,000 chargeable income Subsequent balance YA2020 (and with annual sales not more than RM50m) On first RM600,000 chargeable income Subsequent balance Non-resident Company Trust body (resident or non-resident) 17% 24% 17% 24% 24% 24% Real property gains tax (RPGT) rates (wef 1.1.2019) Disposal within 3 years Disposal in 4th year Disposal in 5th year Disposal in 6th year and thereafter Company 30% 20% 15% 10% Individuals Non-Citizen Citizen or PR & Non-PR 30% 30% 20% 30% 15% 30% 5% 10% Best Sdn Bhd (Best) closes its account annually on 31 December. In the year of assessment 2020, Best had the following sources of income. RM 350,000 (70,000) Business Source 1 Adjusted Income Business Source 2 Adjusted Loss Business Source 3 Japan Income (remitted to Malaysia in October 2020) Rental Adjusted Income 30,000 60,000 What is Best's aggregate income for the year of assessment 2020? Choose one answer. RM 340,000 RM 370,000 RM 440,000 RM 410,000 Breeze Sdn Bhd (Breeze) closes its account annually on 30 June. In the year of assessment 2020, Breeze made a donation of RM38,000 to an approved institution and had the following sources of income: Business Source 1 Adjusted Income Business Source 2 Adjusted Loss Dividends Rental Adjusted Income RM 200,000 (170,000) 130,000 260,000 What is Breeze's chargeable income for the year of assessment 2020? Choose one answer. RM 422,000 RM 420,000 RM 252,000 RM 460,000 Global Sdn Bhd has obtained a bank loan in January 2020. The monthly loan balances and investments financed by the loan are as follows Month ending January February March April May June July August September October November December Loan balances RM 600,000 600,000 600,000 600,000 600,000 600,000 400,000 400,000 400,000 400,000 400,000 400,000 Investments RM 300,000 300,000 300,000 300,000 300,000 300,000 200,000 200,000 200,000 200,000 600,000 600,000 The loan interest expense incurred for 2020 is RM9,600. What is the portion of interest expense that is restricted under section 33(2) of the ITA? Choose one answer. RM 5,600 RM 9,600 RM O (Nil) RM 6,400 Theresa is the owner and operator of Brains Sdn Bhd (Brains), a distributor of educational toys. Theresa wishes to pursue further studies and is looking to sell her business. Upon completion of her studies, Theresa plans to start another business. Brains has been experiencing losses for the past few years. Which of the following is true when Theresa sells her toys distribution business? 1. Unabsorbed capital allowances can be carried forward to be offset against the adjusted income of a new business. 2. Unabsorbed losses can be carried forward to be offset against future business income. 3. The transfer of trade debtors is not subject to income tax. 4. Retrenchment payments to employees are deductible as they are still incurred in the production of business income. Choose one answer. O 3 only 0 1, 2, and 3 All of the above 2 and 3 Mr Leong died domicile in Malaysia on 31 March 2020. He leaves behind his wife and two children aged 9 and 11. His income for the year 2020 is as follows: Business 1: Adjusted loss Business 2: Gross income Revenue expenses (includes executor fees RM12,000) Capital allowances Adjusted rental income Dividends (received on 2 March 2020) Interest from FD (received on 31 July 2020) RM RM 120,000 390,000 54,000 6,000 108,000 3,600 12,000 Assume personal relief of RM17,000. What is the chargeable income of Mr Leong for the year of assessment 2020? Choose one answer. RM 95,500 RM 96,400 RM 66,400 RM 65,500