Question
Mr. Zafrul, an engineer is employed by ZYZ Bhd. since 31 August 2013. For the year 2022, he was
paid a gross monthly salary of RM8,000, until his service is terminated on 31 October 2022. He also
received the following income for the year 2022:






A bonus of RM16,000 for 2021 service
Travelling allowance amounted to RM6,500 for official duties.
Reimbursement of utility bill amounted to RM700 from ZYZ Bhd.
Reward of RM1,500 for passing exam
Gratuity of RM55,000 for the years of service with the company
Compensation for loss of employment of RM77,000.
The company also provides him with a six-year-old car (cost when new: RM90,000) for the period 01
January 2022 to 30 April 2022. From 1 May 2022 he was provided with a new car costing
RM150,000. Free fuel is also provided for him by the employer. The company also pays for the
mobile phone (rental and charges) and other benefits during the year. His benefits and the
respective costs incurred by the employers for the year 2022 are as follows:
RM
Mobile Phone
2,000
Furnishing- Fully furnished
8,000
Gardener’s wages (From May 2022)
8,400
Domestic servant’s wages (From May 2022)
9,000
Driver’s wages
6,700
Childcare benefit
24,000
Leave passage provided to Mr Zafrul in 2022 are as follows:
Month
Location
January
Langkawi
March
Thailand
April
Penang
June
Melaka
July
Kuching
RM
2,120
4,000
1,160
80
1,400
Mr. Zafrul was transferred from Johor Bahru to Kuala Lumpur on 1 January 2022. For the first four
months, he was provided accommodation in the Puteri Pacific Hotel and for the rest of the
employment period, he was provided with a rented bungalow. The costs incurred by the employer
for the year was as follows:
RM
Hotel accommodation (4 months)
6,000
Rented Bungalow (6 months)
14,000
ZYZ Bhd has operated an unapproved retirement scheme since 1989. On 30 September 2022, the
scheme was wound up. Mr Zafrul thus received the following income:
RM
Employer cumulative contributions
31,000
Employee cumulative contributions
25,000
Interest
12,000
His wife, Ms. Edna is 40 years old choose an early retirement with a monthly pension of RM2,500.
To fill up her spare time, she writes book on Malaysian Taxation System and receives royalty income
of RM6,000 from her books. In addition, she also receives RM13,000 translation fees on translation
of literary works at the special request of the Ministry of Education. Apart from that she recorded a
tape on patriotic songs for children and music for elementary schools. She received RM10,000 as
royalties in respect of the recording of tapes.
Ms. Edna owns a terrace house in Cheras that are rented out for the first time. The rental income for
the year amounted to RM6,550. The expenditure for the year of assessment 2022 is as follows:
Advertising cost of obtaining first tenant (RM120), Housing loan interest (RM5,550), Insurance
premium on fire (RM200), Cost of supervision and rental collection (RM300) and Repairs and
Maintenance (RM328).
Ms. Edna also derived the following income for the year ended 2022:
Annuity from his late father’s estate
Malaysian dividend
Foreign dividend (remitted to Malaysia)
Interest from Malayan Banking Bhd for a 15-month fixed deposit
Annuity from Malaysian Life Insurers
Amount received from occasional lectures
Lottery winning
RM
2,500
8,000
1,550
3,300
2,000
1,500
500,000
Details regarding the expenditure incurred by Zafrul and Edna for the year ended 31 December 2022
are as follows:
Zafrul (RM)
Edna
(RM)
Contributions to the Employees Provident Fund
8,800
Cost of a wheelchair for disabled mother
1,300
Medical Expenses for his mother
1,400
Medical insurance premium for himself
1,170
Childcare fees
1,100
Purchase of sports equipment and gym memberships
900
500
Purchase of smart phones
3,500
2,350
Life Insurance premium
2,400
1,800
Tuition fees
8,400
Zakat
7,000
4,000
Note: Zafrul and Edna have not yet been blessed with a child. On 6 May 2022, Edna has legally
adopted her eight-year-old nephew who was a disabled orphan. In 2022, she paid premium on
education policy amounted to RM1,200 and a wheelchair at a cost of RM1,130 for the child.
Required: Compute the total tax payable of Mr. Zafrul and Ms. Edna under joint assessment for the
YA 2022, assuming Edna is the one who elects to be assessed with her husband income.
Suggested Solution (Joint Assessment)
Computation of Tax Payable for the year of assessment 2022
RM
Zafrul
Section 13(1)(a)
Salary (RM8,000 x 10)
Bonus (year of receipt)
Travelling allowance for official duties (exempted RM6,000)
Reimbursement of utility bill
Reward for passing exam (Not taxable)
Gratuity (RM55,000 – RM1,000 x 9 years)
Section 13(1)(b)
Used Car (RM3,600/2 x 4/12)
New Car (RM5,000 x 6/12)
Fuel (RM1,200 x 4/12 + RM1,500 x 6/12)
Mobile Phone (exempted)
Furnishing- Fully furnished (RM3,360 x 6/12)
Gardener’s wages (RM300 x 6)
Domestic servant’s wages (RM400 x 6)
Driver’s wages (RM600 x 10)
Childcare benefit (exempted)
Leave passage (domestic)
Leave passage (overseas) (RM4,000 – 3,000)
Section 13(1)(c) Accommodation
Hotel: (3% x RM143,200 x 4/10)
House: Define value: RM14,000
or 30% x RM143,200 x 6/10 = RM25,776
Lower amount
80,000
16,000
500
700
46,000
600
2,500
1,150
1,680
1,800
2,400
6,000
80
1,000
14,000
17,210
15,718
31,000
Section 13(1)(e) Compensation loss of employment
RM77,000 – (RM10,000 x 9 years)
-
Total Employment Income
Total Income
143,200
1,718
Section 13(1)(d) Unapproved Fund
Employer cumulative contributions
Section 4(c)
Interest
RM
207,128
-
12,000
219,128
Edna
Section 4(c)
Malaysian dividend (exempt)
Foreign dividend (remitted to Malaysia) (exempt)
Interest from Malayan Banking Bhd(exempt)
RM
-
Section 4(d) Royalty
Book publication (RM6,000 – 20,000)
Translation fees (RM13,000 – 12,000)
Recording of tapes (RM10,000 – 10,000)
Section 4(d) Rental income
Less: Expenditure
Advertising cost of obtaining first tenant
Housing loan interest
Insurance premium on fire
Cost of supervision & rental collection
Repairs and Maintenance
Adjusted rental income
1,000
6,550
(5,550)
(200)
(300)
(328)
172
Section 4(e) Pension Income (RM2,500 x 12 months)
Section 4(e) Annuity from her late father’s estate
Section 4(e) Annuity from Malaysian Life Insurers (exempted)
Section 4(f) Lottery winning – exempted
Total Income
Aggregate Total Income (219,128 + 33,672)
Less: Reliefs
Personal
Wife Reliefs
EPF contributions (max) + Life Insurance (max)
Medical expenses for Edna’s mother (disallowed)
Costs of a wheelchair for Edna’s mother (disallowed)
Child relief for adopted child
Education & Medical insurance premium
Cost of Basic Supporting Equipment for adopted child
Tuition fees (disallowed as incurred by Edna)
Lifestyle
Lifestyle (Additional)
Childcare (> 6 yo)
Sports equipment (Additional)
Chargeable income
Tax on first RM100,000
Tax on next RM117,800 at 24%
Tax Liability
Less: Rebate (Zakat)
Tax Payable
RM
30,000
2,500
33,672
252,800
9,000
4,000
7,000
6,000
2,370
1,130
2,500
2,500
500
(35,000)
217,800
10,700
28,272
38,972
(7,000)
31,972