Consumer Mathematics: Taxation
Taxable income
Income after allowed deductions, on which tax is calculated using the given rates.
| English | Taxable income |
|---|---|
| Bahasa Melayu | Pendapatan bercukai |
| 中文 | 应税收入 |
How it is used
Encik Rahman earns RM48,000 a year and qualifies for RM11,000 in total relief. His taxable income is RM48,000 − RM11,000 = RM37,000, and the tax is worked out on that RM37,000, not on the full RM48,000.
Where it shows up in SPM
In Consumer Mathematics (Taxation), Form 5. Usually a Paper 2 structured question: you are given annual income and a list of reliefs, told to find the taxable (chargeable) income first, then use a supplied rate table to compute the tax.
Don't confuse it with
Open the chapter: Consumer Mathematics: Taxation →
Frequently asked questions
Do I calculate tax on my full salary or on taxable income?
Always on the taxable income. First subtract every allowed relief from your gross annual income, then apply the rate table to the smaller figure that remains.
Using the full salary is the most common mistake and loses method marks.
Is EPF contribution part of taxable income?
No. In these questions EPF is given as a relief, so you subtract it.
For example, income RM48,000 with EPF relief RM5,000 and other reliefs RM6,000 gives taxable income RM48,000 − RM11,000 = RM37,000.