Sekolah Menengah Paragon (JGAJ003)

Paragon Education Sdn. Bhd. (1065913-H)

No 3, Jalan Mutiara Utama, Taman Perindustrian Plentong, Mukim Plentong,
81750 Johor Bahru, Johor. Tel: +607-3619696 Fax: +607-3619700

Name : ______________________ Class : Form 5.1

Subject : Mathematics Date : __ / __ / 2021
Topic : 012 - Consumer Mathematics: Teacher’s Name : Tan Jun You
Taxation

Exercise 1
1. State the purposes of taxation in Malaysia.

Purpose of Taxation

2. State the type of taxes and the authority that collects the taxes.
Description Type of taxes The authority

(a) The tax levied on the owner of land.

(b) The tax imposed on the income

earned by individual.
(c) The tax levied on the owner of
house.

(d) The tax levied on good and services.

(e) The tax levied on road user who own

vehicle.

Individual income tax to be paid is calculated based on the amount of chargeable income.
Chargeable income can be obtained by using the equation below.
Chargeable income
= total annual income – tax exemption – tax relief

Total annual income includes all forms of wages, salaries, bonuses, dividends, interest, rentals,
royalties, premiums and so on.

Tax exemption refers to all personal expenses in the forms of gifts, donations, contributions to
government or various organisations, for example state libraries and healthcare organisations.

Tax reliefs refer to items or expenses, which are not taxed, for the benefit of the individual or family
members, for example Employees’ Provident Fund (EPF), medical treatment and education fees.

Form 5 Mathematics 1 Mathematics, SMP2021

Tax rebate is given to reduce tax to be paid. There are 2 types of tax rebate, namely:
(a) Tax rebate of RM400 will be given to taxpayer if the chargeable income does not exceed
RM35 000, subject to change.
(b) The amount of zakat or fitrah paid by Muslim citizens.

Tax Relief for Resident Individual

Year of Assessment 2020
No. Individual Relief Types Amount (RM)
1 Individual and dependent relatives 9,000
2 Medical treatment, special needs and carer expenses for parents (Medical
5,000 (Restricted)
condition certified by medical practitioner)
OR OR
Parent
Restricted to 1,500 for only one mother
3000 (Restricted)
Restricted to 1,500 for only one father
3 Basic supporting equipment for disabled self, spouse, child or parent 6,000 (Restricted)
4 Disabled individual 6,000
5 Education fees (Self)
i. Other than a degree at masters or doctorate level - Course of study in
law, accounting, islamic financing, technical, vocational, industrial, 7,000 (Restricted)
scientific or technology
ii. Degree at masters or doctorate level - Any course of study
6 Medical expenses for serious diseases for self, spouse or child
7 Medical expenses for fertility treatment for self or spouse 6,000 (Restricted)
8 Complete medical examination for self, spouse, child (Restricted to 500)
9 Lifestyle – Expenses for the use / benefit of self, spouse or child in respect of:
i. purchase of books / journals / magazines / printed newspapers / other
similar publications (Not banned reading materials)
ii. purchase of personal computer, smartphone or tablet (Not for business
2,500 (Restricted)
use)
iii. purchase of sports equipment for sports activity defined under the
Sports Development Act 1997 and payment of gym membership
iv. payment of monthly bill for internet subscription (Under own name)
10 Lifestyle – Purchase of personal computer, smartphone or tablet for self, spouse
or child and not for business use
2,500 (Restricted)
(Additional deduction for purchase made within the period of 1st June 2020
to 31st December 2020)
11 Purchase of breastfeeding equipment for own use for a child aged 2 years and
1,000 (Restricted)
below (Deduction allowed once in every 2 years of assessment)
12 Child care fees to a registered child care centre / kindergarten for a child aged 6
3,000 (Restricted)
years and below
13 Net deposit in Skim Simpanan Pendidikan Nasional (Total deposit in
8,000 (Restricted)
2020 MINUS total withdrawal in 2020)
14 Husband / wife / payment of alimony to former wife 4,000 (Restricted)
15 Disabled husband / wife 3,500
16 Each unmarried child and under the age of 18 years old 2,000
17 Each unmarried child of 18 years and above who is receiving full-time education
2,000
("A-Level", certificate, matriculation or preparatory courses).

Form 5 Mathematics 2 Mathematics, SMP2021

 18 Each unmarried child of 18 years and above that:
i. receiving further education in Malaysia in respect of an award of
diploma or higher (excluding matriculation/ preparatory courses).
ii. receiving further education outside Malaysia in respect of an award of 8,000
degree or its equivalent (including Master or Doctorate).
iii. the instruction and educational establishment shall be approved by the
relevant government authority.
19 Disabled child 6,000
Additional exemption of RM8,000 disable child age 18 years old and above, not
married and pursuing diplomas or above qualification in Malaysia @ bachelor
8,000
degree or above outside Malaysia in program and in Higher Education Institute
that is accredited by related Government authorities
20 Life insurance and EPF INCLUDING not through salary deduction
i. Pensionable public servant category
• Life insurance premium
7,000 (Restricted)
ii. OTHER than pensionable public servant category
• Life insurance premium (Restricted to RM3,000)
• Contribution to EPF / approved scheme (Restricted to RM4,000)
21 Deferred Annuity and Private Retirement Scheme (PRS) - with effect from year
3,000 (Restricted)
assessment 2012 until year assessment 2021
22 Education and medical insurance (INCLUDING not through salary deduction) 3,000 (Restricted)
23 Contribution to the Social Security Organization (SOCSO) 250 (Restricted)
24 Payment for accommodation at premises registered with the Commissioner of
Tourism and entrance fee to a tourist attraction
(Accomodation expenses at premises registered with the Ministry of 1,000 (Restricted)
Tourism, Arts and Culture Malaysia and entrance fees to tourists
attractions incurred on or after 1st March 2020)

Tax Rates Assessment Year 2020

Chargeable Income (RM) Calculations (RM) Rate (%) Tax (RM)
0 – 5,000 On the First 5,000 0 0
On the First 5,000 0
5,001 – 20,000
Next 15,000 1 150
On the First 20,000 150
20,001 – 35,000
Next 15,000 3 450
On the First 35,000 600
35,001 – 50,000
Next 15,000 8 1,200
On the First 50,000 1,800
50,001 – 70,000
Next 20,000 14 2,800
On the First 70,000 4,600
70,001 – 100,000
Next 30,000 21 6,300
On the First 100,000 10,900
100,001 – 250,000
Next 150,000 24 36,000
On the First 250,000 46,900
250,001 – 400,000
Next 150,000 24.5 36,750

Form 5 Mathematics 3 Mathematics, SMP2021

Exercise 2
1. Calculate the chargeable income of each of the following.
(a) (b)
Annual income RM 48 400 Annual income RM 65 400
Tax exempted income RM 2 160 Tax exempted income RM 4 320
Tax exemption RM 1 320 Tax exemption RM 3 000
Tax relief RM 5 500 Tax relief RM 31 500

(c) (d)
Annual income RM 189 600 Annual income RM 83 700
Tax exempted income RM 32 000 Tax exempted income RM 7 200
Tax exemption RM 8 500 Tax exemption RM 2 500
Tax relief RM 41 025 Tax relief RM 24 325

2. Calculate the individual income tax of each of the following according to the given Tax Rates for Assessment.
Chargeable Income (RM) Calculations (RM) Rate (%) Tax (RM)
0 – 5,000 On the First 5,000 0 0
On the First 5,000 0
5,001 – 20,000
Next 15,000 1 150
On the First 20,000 150
20,001 – 35,000
Next 15,000 3 450
On the First 35,000 600
35,001 – 50,000
Next 15,000 8 1,200
On the First 50,000 1,800
50,001 – 70,000
Next 20,000 14 2,800
On the First 70,000 4,600
70,001 – 100,000
Next 30,000 21 6,300

(a) (b)
Chargeable income RM 34 600 Chargeable income RM 57 100
Zakat or Fitrah RM 150 Zakat or Fitrah RM 360

(c) (d)
Annual income RM 33 900 Annual income RM 83 900

Form 5 Mathematics 4 Mathematics, SMP2021

3. Determine whether the following monthly tax deduction (PCB) situation has an insufficient tax payment or
excess deduction. Hence calculate the amount. (Refer Ta Rates for Assessment in Question 2).
(a) (b)

Annual Salary RM 72 000 Annual Salary RM 60 000

PCB RM 170 PCB RM 10
Donate to welfare centre RM 1 500
Zakat/Fitrah RM 380 Individual RM 9 000
Mother’s treatment RM 3 500
Individual RM 9 000 Lifestyle RM 2 500
Parents RM 2 200 Kindergarten fees RM 1 000
Lifestyle RM 1 800 Wife RM 4 000
EPF RM 4 000 Child RM 2 000
Perkeso RM 250 Life insurance and EPF RM 5 300
Perkeso RM 250

Form 5 Mathematics 5 Mathematics, SMP2021