Oriental Insurance Bhd, a Malaysian resident company, carries on a general insurance business. The company’s annual accounts closed on 31 December and the information extracted from the accounts for the year ended 31.12.2017 are as follows:

● Gross premiums income RM140,000,000

● Allowable expenses 100,000,000

● Capital allowance RM75000

● Other income:

o Rental RM34,000,000

o Dividend (Malaysia) (tax at source @24%) RM28,000,000

o Interest (Malaysia) RM9,000,000

o Interest (German) RM1,000,000, (the interest was subject to withholding tax in German at the rate of 15.5%)

Required:

Calculate the tax payable of Oriental Insurance Bhd, for year assessment 2017 assuming that:

i) Malaysia and German have signed Double taxation agreement (DTA) and entitled to claim bilateral credit from IRB.

ii) Malaysia and German do not have Double taxation agreement (DTA) and entitled to claim unilateral credit from IRB.

 

Answer rating: 100% (QA)

i If Malaysia and German have signed DTA Oriental Insurance Bhd is entitled to claim bilateral credi... View the full answer