David is a manager in a manufacturing firm and was transferred from Kuala Terengganu to Kuala Lumpur
Question:
David is a manager in a manufacturing firm and was transferred from Kuala Terengganu to Kuala Lumpur on 1 January 2021. For the first 2 months, he was provided with accommodation in the Kuala Lumpur International Hotel, and for the rest of the year, he was provided with a rented unfurnished house.
He received the following employment remuneration benefits from his employer for the year ended 31 December 2021.
RM
Salary 120,000
Employer’s contribution to EPF @ 19% 22,800
PTPTN loan repayment 12,000
Free clothing provided by the employer 2,000
Servant (provided and paid by the employer) 10,000
Gardener (hired by him and paid by the employer) 4,000
Hotel accommodation paid by the employer 8,000
School fees for his child aged 8 years old 9,000
Travelling allowance 12,000
Reimbursement of RM700 per month being monthly salary of driver employed by Encik David.
The company paid an annual rental of RM16,400 for the house.
Entertainment expenses incurred by him was RM3,000 and a further RM13,000 was incurred on travelling to meet company’s client. Traditional medical treatment on his illness of RM11,500 was paid by the company.
Required:
- The Statutory income from employment for David for the YA 2021.
- The value of accommodation under section 13(1)(c) if David is a director (but not a service director) of a controlled company.
- The defined value of the rented house if the house was provided from 1 January 2021 but only occupied by the employee from 1 March 2021.
Expert Answer:
a The Statutory income from employment for David for the YA 2021 The Statutory income from employment for David for the YA 2021 is RM236800 Explanatio... View the full answer
