Tutorial – Personal Income Tax

QUESTION 1

Aris has four children and his wife is a housewife. His eldest child is
studying in a university while the rest are still schooling. His income and
expenses are as follows:

Income and Expenses RM

Salary 58,000
Employees Provident Fund (EPF) 6,380
Parent’s medical expenses 2,300
Donations 400
Zakat 500

Calculate the tax payable for the assessment.

Tax relief RM
Personal 9000
Wife 3000
Children relief - schooling 3000
- university 6000
EPF 6000
Medical expenses of parents 2300
Donation 400

Assessment of chargeable income

RM RM
Income 58000

Less deduction
Personal 9000
Wife 3000
Children relief - schooling 3000
- university 6000
EPF 6000
Medical expenses of parents 2300
Donations 400 (29700)
Chargeable income 28300
Assessment of tax payable
Chargeable income Rate Tax
On the first RM20000 300
On the next RM8300 6% 498+
Tax 798
Minus tax rebate for individual and wife 800-
Zakat 500
Tax payable -502
QUESTION 2

Johan and his wife have 5 children. Two of their children are studying in a
local university doing their bachelor degree while the rest are still schooling.
However the youngest is disabled. Their income and expenditures are as
follows:

Income and Expenses Johan (RM) Wife (RM)

Salary 65,000 32,400
Employees Provident Fund 2,500
3,700
(EPF)
Life Insurance Premium 2,200 1,800
Parent’s medical expenses 4,500 1,200
Books and journal 650 1,200
Computer 2,800 2,100
Donations 950 550
Zakat 450 250

Calculate their tax liability if they choose:

a) joint assessment
b) separate assessment
a) joint assessment
RM RM
Income 97400
Less deduction
Personal 9000
Wife 3000
Children relief - university 12000
- schooling 2000
- handicap 5000
EPF&LIP 6000
Donations 1500
Medical expenses for parents 4500
Expenses on books and journal 1000
Computer 3000 (47000)

Chargeable income 50400

Assessment of tax payable

Chargeable income Rate Tax
On the first RM50000 2850
On the next RM400 19% 76+
Tax 2926
Minus tax rebate
Zakat 700-
Tax payable 2226
b) Separate assessment -Johan
RM RM
Income 65,000
Personal 9000
Children relief - university 12000
- schooling 2000
- handicap 5000
EPF&LIP 5900
Donations 950
Medical expenses of parents 4500
Expenses on books and journal 650
Computer 2800 (42800)
Chargeable income 22200

Assessment of tax payable

Chargeable income Rate Tax
On the first RM20000 300
On the next RM2200 6% 132+
Tax 432
Minus Tax rebate
Taxable income less than RM35000 400
Zakat 450-
Tax Payable -418

Johan do not have pay tax

b) Separate assessment -Wife
Assessment of chargeable income RM RM
Income 32,400
Personal 9000
EPF&LIP 4300
Medical expenses of parents 1200
Expenses on books and journal 1000
Computer 2100
Donations 550 (18150)
Chargeable income 14250

Assessment of tax payable

Chargeable income Rate Tax
On the first RM10000 100
On the next RM4250 2% 85+
Tax 185
Minus Tax rebate
Taxable income less than RM35000 400
Zakat 250-
Tax Payable -465

Johan wife do not have to pay tax