STEPS TO DETERMINE CHARGEABLE INCOME

Resident Individual Taxpayer

Business Income – s. 4(a) [Non-corporate]

Net profit as per accounts
Less: Non-business income (such as rental, dividends &
interest)
Add: Non-allowable expenses
Less: Double deductions (if any)
Special deductions (if any)
= Adjusted Income – s 4(a)
Add: Balancing charge
Less: s.42 Capital allowances (both current & CA b/f)
Less: Balancing Allowance
Note: Carry forward excess CA’s to use against next year’s
adjusted income from same source
= Statutory Income – s 4(a)
Less: Business loss b/f s.43(2)
Add: Other non-business (such as statutory employment, rental,
and interest income)
= Aggregate Income
Less s.44(2) – current year’s business losses (adjusted loss)
s.44(6) and (8) – permitted donations
=Total Income
Less: Personal reliefs (available only for resident taxpayers)
=Chargeable income