Page 22 - Consumer Mathematics
P. 22
Example 3
Mr Chan had a total annual income of RM52 770 in Solution:
the year 2020. He donated RM300 to a Chargeable income = total annual income – tax exemption – tax relief
Tax government-approved charity organization. The = Rm52 770 – rm300 – (rm9 000 + rm5 800
table below shows the tax reliefs claimed by Mr
+ rm1 700 + rm4 000) = rm31 970
Chan.
Mr chan’s chargeable income, rm31 970 lies in the range of chargeable
income as below.
Tax on the first RM20 000 = RM150
Calculate the income tax payable by Mr Chan for Tax on the next balance = (RM31 970 – RM20 000) × 3% = RM359.10
the particular year, by taking into account the tax Eligible rebate = RM400 (Rebate of RM400 due to chargeable income < RM35 000 )
rebates, if eligible. Income tax payable = RM150 + RM359.10 – RM400 = RM109.10
