EXAMPLE 11

Chapter 4 : TAXATION
Sabrina has a chargeable income of RM30 633 in 2020. She has paid zakat
amounting to RM230 in that year.

A) How much is Sabrina’s tax rebate?

B) Calculate the income tax payable by Sabrina

A) Chargeable income = RM 30 633

Rebate (zakat) = RM 230
Chargeable income Sabrina not exceed RM 35 000
so Sabrina will get tax rebate
(RM 400).
Sabrina’s total tax rebate = RM 400 + RM 230
= RM 630
B) Chargeable Calculations (RM) Rate (%) Tax (RM)
Income (RM)
20 001 – 35 000 On the first 20 000 150
Next 15 000 3 450

Tax on the first RM 20 000 = RM 150

Tax on the next balance = (RM 30 633 – RM 20 000) x 3%
= RM 10 633 x 3%
= RM 318.99

Income tax payable

= RM 150 + RM 318.99 – RM 630
= RM 468.99 – RM 630
= (- RM 161.01) excess rebate will not be refunded to
taxpayer. Thus, tax
payable = RM 0
= RM 0