Tutorial 3

Question 1

Adam (a UK citizen) retired as a manager at Sarawak Plantation Bhd, a Malaysian plantation

company, when he reached the age of 50 in December 2018 (not compulsory retirement age). He
had worked for the company for more than 10 years. Upon his retirement, Adam purchased a
condominium in Kuala Lumpur and rent out the condominium (furnished). Through a qualified real
estate agent, Adam managed to rent the house to first tenant starting from March 2019. However,
due to unavoidable circumstances, the tenant moved out on 30 September 2019. Through the same
agent, Adam managed to find the second tenant started from November 2019. The following
information was provided by Adam in relation to his incomes, which were derived from Malaysia and
expenses for the year of assessment 2019:

Item RM

Pension 84,000
Rental
Monthly rental:
March to September 2019 1,200 per month

November to December 2019 1,500 per month

Rental deposit (refundable):
1st tenant 2,400

2nd tenant 3,000

Utilities deposit (not refundable):
1st tenant 1,200

2nd tenant 1,500

Expenses:
Real estate agenta 2,750
First tenancy agreement 600
Second tenancy agreement 700
Repairs of clogged toilet 1,250
Installation of air-condition (October, 2019) 2,500
Fire insurance (January to December 2019) 6,600
Replacement of furniture (October, 2019) 2,000
Annual quit rent and assessment 7,200

Interest and Dividend

 Interest from fixed deposit at Maybank Bhd 4,500
Interest from bond of a listed company 10,800
Dividend from Sarawak Plantation Bhd 15,500
Royalty Publication of a book written by Adam titled
“Plantation and Sustainability”
25,000
Honorarium Received for services provided to the Malaysian
Qualification Agency
5,000
a
50% of the amount was related to searching for the first tenant.

REQUIRED:

Compute the aggregate income for Adam for the year of assessment 2019. Please list all items and
indicate “NIL” for non-taxable-income or non-allowable expenses.

Question 2

Textbook review question number 4