BBFT3014/BBFT3013 ADVANCED TAXATION

APPENDIX A
T2: Suggested answer to Question 1(d)

MyCo. Sdn. Bhd. (MCSB) (Pioneer Status, Production date: 1.11.2019)

The rate of abatement of statutory income is 70%

Tax Computation:
Year of Assessment 2019 2020 2021 2022 2023 2024 #

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Pre-pioneer business
Adjusted income 0
Less: IBA & CA 0
Statutory income 0
Pioneer business (PB)
Adjusted income 0 3,000 6,000 10,000 15,000
Less: IBA & CA 0 3,000 6,000 9,500 200
Statutory income (SI) 0 0 0 500 14,800
Less: Abated statutory income (70% of SI) 0 0 0 350 10,360
Deemed total income (30% of SI) 0 0 0 150 4,440

FD interest from local bank 0 80 80 80 80 80

Single tier dividend - Para. 12B, Sch. 6 Exempt Exempt Exempt Exempt Exempt Exempt
Rental from shophouse in KL 100 100 100 100 100 100
Aggregate income (AI) (Biz & Non-Biz) 100 180 180 180 180 180
Less: Current year business loss 100 0 0 0 0 0
App. cash donation (rest. to 10% AI) 10 18 18 18 18 18
Cash donation to Govt. - 200 200 - - -
Total income 0 0 0 162 162 162
Deemed total income (30% of SI from PB) 0 0 0 150 4,440
Chargeable income 0 0 0 162 312 4,602

Total chargeable income in the period for YA 2020 to YA 2024 5,076

Tax exempt account (Pioneer status)

Balance b/f 0 0 0 0 150
70% of statutory income 0 0 0 350 10,360
0 0 0 350 10,510
Less: Pioneer losses b/f 0 0 0 200 0
Balance c/f 0 0 0 150 10,510

Pre-pioneer & Pioneer business

Industrial building allowance (IBA) & capital allowance (CA) - TAX DEPRECIATION
Balance b/f - 5,500 10,000 10,500 8,000 -
Claimed in current year 5,500 4,500 3,500 3,500 1,500 200
Amount available 5,500 10,000 13,500 14,000 9,500 200
Less: Utilisation / Untilised - - 3,000 6,000 9,500 200
Balance c/f 5,500 10,000 10,500 8,000 - -

Pioneer business loss

Balance b/f 0 200 200 200 0
Business loss 200 0 0 0 0
200 200 200 200 0
Less: Utilisation 0 0 0 200 0
Balance c/f 200 200 200 0 0

Pre-pioneer business loss b/f & c/f 200* 200 200 200 200 200
* (RM300K - RM100)