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Tutorial 2 (2) 1 (D)

1. MyCo. Sdn. Bhd. was granted pioneer status from 1.11.2019, with an abatement rate of 70% of statutory income. 2. Over the pioneer period from 2020 to 2024, MyCo. had a total chargeable income of RM5,076,000 after abatement and other deductions. 3. MyCo. accumulated RM10,510,000 in its tax exempt account by the end of the pioneer period in 2024, which can be utilized to offset future tax liabilities after the expiration of pioneer status.

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65 views

Tutorial 2 (2) 1 (D)

1. MyCo. Sdn. Bhd. was granted pioneer status from 1.11.2019, with an abatement rate of 70% of statutory income. 2. Over the pioneer period from 2020 to 2024, MyCo. had a total chargeable income of RM5,076,000 after abatement and other deductions. 3. MyCo. accumulated RM10,510,000 in its tax exempt account by the end of the pioneer period in 2024, which can be utilized to offset future tax liabilities after the expiration of pioneer status.

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Shan Jeef
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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BBFT3014/BBFT3013 ADVANCED TAXATION

APPENDIX A
T2: Suggested answer to Question 1(d)

MyCo. Sdn. Bhd. (MCSB) (Pioneer Status, Production date: 1.11.2019)


The rate of abatement of statutory income is 70%

Tax Computation:
Year of Assessment 2019 2020 2021 2022 2023 2024 #

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000


Pre-pioneer business
Adjusted income 0
Less: IBA & CA 0
Statutory income 0
Pioneer business (PB)
Adjusted income 0 3,000 6,000 10,000 15,000
Less: IBA & CA 0 3,000 6,000 9,500 200
Statutory income (SI) 0 0 0 500 14,800
Less: Abated statutory income (70% of SI) 0 0 0 350 10,360
Deemed total income (30% of SI) 0 0 0 150 4,440

FD interest from local bank 0 80 80 80 80 80


Single tier dividend - Para. 12B, Sch. 6 Exempt Exempt Exempt Exempt Exempt Exempt
Rental from shophouse in KL 100 100 100 100 100 100
Aggregate income (AI) (Biz & Non-Biz) 100 180 180 180 180 180
Less: Current year business loss 100 0 0 0 0 0
App. cash donation (rest. to 10% AI) 10 18 18 18 18 18
Cash donation to Govt. - 200 200 - - -
Total income 0 0 0 162 162 162
Deemed total income (30% of SI from PB) 0 0 0 150 4,440
Chargeable income 0 0 0 162 312 4,602

Total chargeable income in the period for YA 2020 to YA 2024 5,076

Tax exempt account (Pioneer status)


Balance b/f 0 0 0 0 150
70% of statutory income 0 0 0 350 10,360
0 0 0 350 10,510
Less: Pioneer losses b/f 0 0 0 200 0
Balance c/f 0 0 0 150 10,510

Pre-pioneer & Pioneer business


Industrial building allowance (IBA) & capital allowance (CA) - TAX DEPRECIATION
Balance b/f - 5,500 10,000 10,500 8,000 -
Claimed in current year 5,500 4,500 3,500 3,500 1,500 200
Amount available 5,500 10,000 13,500 14,000 9,500 200
Less: Utilisation / Untilised - - 3,000 6,000 9,500 200
Balance c/f 5,500 10,000 10,500 8,000 - -

Pioneer business loss


Balance b/f 0 200 200 200 0
Business loss 200 0 0 0 0
200 200 200 200 0
Less: Utilisation 0 0 0 200 0
Balance c/f 200 200 200 0 0

Pre-pioneer business loss b/f & c/f 200* 200 200 200 200 200
* (RM300K - RM100)

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