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Lecture Exercise
Montrose Sdn. Bhd. was formed on 1st January 2010 with the objective of letting
cottages in Fraser Hill, Pahang. All its rental properties come with cleaning and
facilities maintenance services.
The following is the statement of profit and loss for Montrose Sdn. Bhd. for the
financial year ended 31st December 2021.
RM RM
Gross income
Interest 53,000
Dividend received from shares listed in Bursa
47,000
Malaysia (Malaysian companies)
Dividend received from Vietnamese listed
86,000
companies
Rental 41,000
227,000
Less: Expenses
Interest on loan for shares acquired 7,300
Interest on loan for deposits placed 8,000
Interest on loan for properties acquired 21,000
Fund management fees for shares acquired 20,000
Rates and assessments 3,950
Repairs and maintenance on rental properties 5,250
Management fees 32,000
Wages and salaries 52,000
Entertainment expenses 6,500 (156,000)
Net profit before tax 71,000
i. Determine, using the requirement set by Section 60F(2), whether Montrose Sdn.
Bhd. is an investment holding company.
ii. Calculate the aggregate income and income tax payable for Montrose Bhd. for
YA2021.
1
Solution
i. Determine, using the requirement set by Section 60F(2), whether Montrose Sdn.
Bhd. is an investment holding company.
Taxable Exempt
Interest 53,000 -
Dividend - 133,000
Investment income (A) 53,000 133,000 186,000
Rental (with support services) 41,000
B 227,000
� ��……. .
× 100% = × 100% = ………%
� ��……….
Montrose Sdn. Bhd. is an investment holding company (IHC) under S60F(2) as the
80% gross income criterion is satisfied.
ii. Calculate the aggregate income and income tax payable for Montrose Bhd. for
YA2021.
RM RM RM
S4(c) Interest income
Interest income
Less: Interest expense for deposits placed
Adjusted income
Dividend income
Shares listed in Bursa Malaysia
(Malaysian companies)
Vietnamese listed companies
Note 1
RM RM
Permitted expenses
Management fees
Wages and salaries
� ��………….
� × = ��……. × 4 ��…………………
= ��………………. .
4�
5% of B= RM……………….@5%=………………