Consumer Mathematics: Taxation

Question 1

A person's gross annual income is RM50,000 and total tax reliefs are RM11,000. Find the taxable income (in RM).

Accepted Answer

39000 — Taxable income = gross income − reliefs = 50,000 − 11,000 = RM39,000.

Question 2

A taxable income of RM30,000 is taxed at a flat 8%. Find the tax payable (in RM).

Accepted Answer

2400 — Tax = 30,000 × 8% = 30,000 × 0.08 = RM2,400.

Question 3

The tax charged is RM3,000 and there is a tax rebate of RM400. Find the tax payable (in RM).

Accepted Answer

2600 — Tax payable = tax charged − rebate = 3,000 − 400 = RM2,600.

Question 4

A tax relief is subtracted from your:

Accepted Answer

Gross income — A relief is subtracted from gross income to give taxable income.

Question 5

A tax rebate is subtracted from your:

Accepted Answer

Tax charged — A rebate is subtracted from the tax charged, not from income.

Question 6

Income tax in Malaysia is charged using:

Accepted Answer

Progressive tax bands (higher income taxed at higher rates) — Malaysian income tax is progressive: higher slices of income are taxed at higher rates.

Question 7

Tax is charged as: first RM20,000 at 0%, next RM15,000 at 3%. For a taxable income of RM35,000, find the tax (in RM).

Accepted Answer

450 — Tax = 0 + 15,000 × 3% = RM450 (the first RM20,000 is not taxed).

Question 8

Which of these is an example of a tax relief?

Accepted Answer

EPF contribution — EPF contributions qualify as a tax relief, reducing taxable income.

Question 9

The tax on the first RM35,000 of chargeable income is RM600. For a chargeable income of RM50,000 with the balance taxed at 8%, find the total tax (in RM).

Accepted Answer

1800 — Balance = 50,000 − 35,000 = 15,000; tax on balance = 15,000 × 8% = 1,200; total = 600 + 1,200 = RM1,800.

Question 10

If a person's chargeable income is below the taxable threshold, the income tax charged is:

Accepted Answer

RM0 — Income within the 0% band is not taxed, so the tax charged is RM0.

1. Taxable income

2. Calculating the tax