PRACTISE QUESTION 1 – EMPLOYMENT INCOME

Khalid was a project manager at IT consultant Sdn Bhd since 1 March 2011 and decided to resign on 1 June
2023. Before his retirement, he took a one month paid leave in May 2020 and received a gratuity amounting to
RM124,000. Details of his remuneration and benefits received before his retirement:
a) A net salary of RM9,960 per month after deducting EPF of 11%, hire-purchase loan of RM1,500, schedular
tax deduction of RM 400 and zakat RM600.
b) A reimbursement of water and electricity bills amounted to RM3,000
c) A notebook costing RM9,500 as gift for his long service award
d) A gift voucher in the form of an “umrah” package worth RM7,000
e) A medical treatment paid by company for his son’s acupuncture treatment.
f) A credit card whereby he spent RM7,000 of which 80% was used for business purpose. The company paid a
credit card annual membership fees of RM100.
g) A fully furnished semi-D house was provided until 31 May 2023. A defined value of RM42,000 per annum
(excluding furniture cost). The company hired a local maid with a salary of RM1,500 per month for him.
h) A leave passage to Sapporo, Japan. Total cost incurred by company on airfare was RM5,000.
i) A corporate membership in a golf recreational club with a monthly subscription of RM250 paid by the
company.
j) Khalid withdrew RM115,000 form an unapproved fund of which 35% represented the employee’s
contribution.
k) During the year until his retirement, he incurred RM6,500 entertainment expenses exclusively related to
business.
Required:
For the income and benefit listed above, determine the employment income tax treatment for Khalid in deriving
his statutory employment income for year of assessment 2023.
PRACTISE QUESTION 2 – EMPLOYMENT INCOME

Jasmin worked as a Marketing Manager with Seroja Sdn Bhd since 1 July 2019. The company has suffered
heavy losses since the country was in the pandemic phase due to covid-19 outbreaks. Therefore, Jasmin was
terminated from her employment on 31 August 2023, and she received RM30,000 as payment for gratuity. Below
is the information on remuneration and benefits received by her in 2023:

a. Monthly salary of RM6,689 after deducting EPF contribution of 11%, Zakat RM300 and monthly tax
deduction of RM576.
b. Monthly entertainment allowance of RM1,000 and she spent one fourth (1/4) of the allowances to
entertain her client.
c. Monthly childcare allowance of RM250 and monthly medical allowance of RM500.
d. She received a fully furnished bungalow until 31 August 2023. The defined value of the house was
RM3,200 monthly including the cost of furniture RM750. Puan Jasmin was required to pay a nominal
rental of RM1,200 per month. She received a domestic servant and gardener whose monthly salary the
employer paid were RM700 and RM600, respectively.
e. A brand-new car, Honda CR-V costing RM171,000 together with a driver were provided to Puan Jasmin
starting from January 2021. The driver received a monthly salary amounting to RM1,100 per month.
f. The company provided her with credit card facilities with a total bill of RM8,700, where she spent 20% on
private purchases and the balance related to her duties. The annual membership fee was RM200.
g. When the travelling restrictions has been abolished, in January 2023 she went for her first vacation to
London amounting to RM8,500. The company paid for her second vacation expenses to Cameron
Highland at a cost of RM3,400 in May 2023.
h. She withdrew RM60,000 from the unapproved fund, of which 40% of total withdrawal was from her
contribution.
Required:
Calculate the statutory employment income of Jasmin for the year of assessment 2023.