Puan Naimah , aged 40, is a senior manager of production at Penang Shugater in Penang. She has been working with the company since January 1990. The following information is with respect to her income for the year of assessment 2022.

(i) Net monthly salary of RM20,000. The monthly EPF contribution of Puan Naimah is RM2,200.

(ii) Bonus equivalent to 6 months salary was paid to her in December 2022.

(iii) Entertainment allowance of RM5,000 a month, of which has been fully spent for entertaining the company’s clients.

(iv) A fully furnished house at Bukit Jambooi was provided by the company for 2022. The rateable value of the house is RM4,000 per month including the value of the furniture of RM1,000 per month.

(v) A maid was engaged by Naimah for 11 months with a monthly salary of RM800. She claimed RM8,800 as maid salary paid to the maid from the company. The payment was credited into her account in December 2022.

(vi) The company provides her a BMW and a driver. The cost of the car was RM240,000, when new. The car was purchased by the company in May 2016. The driver’s salary of RM1,100 a month was paid by the company.

(vii) In June 2022, Naimah went for a holiday in New Zealand. The air fare of RM3,500 and hotel bills amounting to RM7,500 were paid by the company.

(viii) A personal membership at Sri Pinang Recreation Club with RM300 per month and a corporate membership at Bukit Jambooi Golf Club of RM400 per month were also paid by the company.

(ix) She was appointed as a director in at the subsidiary Kulim Shugater where she was paid director fees of RM16,000 per annum.

(x) In October 2022, she received a single tier dividend income of RM13,000 from Sime Darby Berhad.

Additional information:

(i) Naimah ’s husband is not working and became disabled due to an accident few years ago. He has no source of income.

(ii) They have three unmarried children aged 19, 21 and 23, who are still studying in the local universities.

(iii) She spent RM5,200 for her husband’s medical expenses and RM4,900 to buy a wheel chair.

(iv) RM1,500 was spent to purchase books for her children.

(v) She paid medical insurance premium of RM3,600.

(vi) In November 2022, she contributed RM2,760 cash donation and a computer worth RM2,800 to Rumah Anak Yatim Mesra, an approved institution under Section 44(6) of Income Tax Act 1967.

(vii) Her scheduler tax deduction for 2022 amounted to RM60,000.

(viii) She paid zakat pendapatan of RM12,000 in the year 2022.

(ix) She made a standing order of RM300 a month to the bank for payment of Skim Simpanan Pendidikan Nasional and RM150 a month subscription fee for the broadband in the year 2022.

Required: 

Compute the income tax (if any) payable by Puan Naimah for the year of assessment 2022

Answer rating: 100% (QA)

SOLUTION To compute the income tax payable by Puan Naimah for the year of assessment 2022 we need to ... View the full answer