1

Mr Tong has 2 children. Age 19 and 12. The older child is currently attending
college full time whereas the younger child, who is disabled, is in primary 6. He
bought a medical policy for the younger child, paying an annual premium of
RM3,900.
For the year of assessment of 2019. Mr Tong’s net taxable income from
employment is RM379,260, of which RM350,000 is salary and the balance is
taxable benefits-in-kind. He also received net rental income of RM53,000. He
contributes to EPF and SOCSO.
His wife is a full-time homemaker. The couple spend alternate weekends
volunteering at two orphanages (both approved for tax purposes). In 2019, Mr
Tong made donations totaling RM10,000 in cash to these orphanages. In the
same period, he bought books totaling RM1,500.
Compute the chargeable income and tax payable for Mr Tong for year of
assessment 2019.

Mr Tong
Tax Computation for the year of assessment 2019
RM
Net taxable income 379,260
Net rental income 53,000
Aggregate income
(-) approved Donation
Total income

Less: relief
Personal 9000
Wife 4000
1st child (college) 8000
2nd child (disabled) 6000
Lifestyle (book) 1500
Medical premium 3000
Epf (restricted) 4000
Sosco (restricted) 250
Total relief
Chargable income

Tax on 1st RM250,000

Tax on balance (386,510 - 250,000) x 24.5%
Income tax payable
sment 2019
RM

432,260
-10,000
422,260

35750
386,510

46,900
33,444.95
80,344.95
2
Encik Mufasa, age 45, is married with five children. He comes to you
for advice on how to compute his personal tax liability for year 2019.
He provides you with the following information:

RM
His salary 75,000
Wife's salary 42,000
Dividend received-by him 3,000
Dividend received-by his wife 2,000
Purchase of computer (by Mufasa) 31,000
Life insurance- himself 2,500
Life insurance- his wife 1,800
Children education policies (Mufasa as payor) 2,000
PRS contribution- Mufasa 2,000
PRS contribution- wife 1,000
Approved donation by Mufasa 500
Zakat-Mufasa 950
Zakat- wife 550
Purchase of books 1,000 (each person)
Subscription of gmym (Mufasa) 1,800
Medical insurance- himself 1,800
Medical insurance- wife 900

4 of his children are in secondary school and one studies in University Malaya 1st year in Business

RM
Item Mufasa
Salary 75,000
Dividend Exempted
Aggregate income 75,000
(-) Approved Donation 500
Total income 74,500
(-) Relief
Personal -9,000
Spouse -
Children(1 Uni=8000,4 sec=2000x4=8000) -16,000
Lifestyle -2,500
PRS contribution -2,000
EPF+Life Insurance (EPF=11%) -6,500
Children Education and Medical -3,000
 SOSCO -250
Total Relief -39,250
Chargeable income 35,250
Tax on 1st 600
(+) Tax on balance 20 [(35,250-35000)x8%]
Tax Payable 620
(-) Rebate
Spouse
Personal -
Zakat -950
Income tax payable -330

Conclusion: Mufasa and his wife are advised to file a separate tax assessment because they would have to pay RM3
niversity Malaya 1st year in Business study.

RM RM
Wife Joint
42,000 117,000
Exempted Exempted
42,000 117,000
- 500
42,000 116,500

-9,000 -9,000
- -4,000
- -16,000
-1,000 -2,500
-1,000 -3,000
-5800 -7,000
-900 -3,000
 -250 -250
-17,950 -44,750
24,050 71,750
150 4,600
121.50 [(24.050-20,000)x3%]367,50 [(71,750-75,000)x21%]
271.5 4967.5

-400
-400 -
-550 -1500
-678.5 3067.5

t because they would have to pay RM3067.50 if they file joint assessment but if they file separately, they can get the refund.
y, they can get the refund.