Consumer Mathematics: Taxation · Form 5
Consumer Mathematics: Taxation: Worked Examples (Easier)
This set builds the first taxation skill: finding chargeable income by subtracting reliefs, applying one given rate, and deducting a rebate. It helps students meeting income tax for the first time.
General information only, not financial or tax advice.
Worked example 1
Encik Rahman's total annual income is RM55,000. His total tax reliefs for the year amount to RM18,000.
Calculate his chargeable income.
- Chargeable income = total annual income − total reliefs (definition).
- = RM55,000 − RM18,000 (substitute the given figures).
- = RM37,000 (subtract).
Worked example 2
Puan Lina's annual income is RM60,000. She claims these reliefs: individual RM9,000, KWSP (EPF) contribution RM4,000, lifestyle RM2,500, and medical for parents RM1,500.
Calculate her chargeable income.
- Total reliefs = 9,000 + 4,000 + 2,500 + 1,500 (add all reliefs).
- = RM17,000 (sum).
- Chargeable income = 60,000 − 17,000 (income minus total reliefs).
- = RM43,000 (subtract).
Worked example 3
Cikgu Hafiz has a chargeable income of RM20,000. The given rate charges income tax at 3% of the chargeable income.
Because his chargeable income does not exceed RM35,000, he receives a rebate of RM400. Calculate his income tax payable.
- Tax charged = 3% × RM20,000 (apply the given rate).
- = RM600 (multiply).
- Tax payable = 600 − 400 (deduct the rebate).
- = RM200 (subtract).
Worked example 4
Puan Aida's annual income is RM70000 and her total tax reliefs are RM24000. Calculate her chargeable income.
- Chargeable income = total income − total reliefs
- = 70000 − 24000 = RM46000
Worked example 5
A taxpayer's chargeable income is RM18000, taxed at 1%. Calculate the income tax.
- Tax = 1% × 18000
- = 0.01 × 18000 = RM180
Worked example 6
A taxpayer's tax charged is RM650. His chargeable income does not exceed RM35000, so he qualifies for the RM400 individual rebate.
Calculate the tax payable.
- Chargeable income ≤ RM35000, so the RM400 rebate applies
- Tax payable = tax charged − rebate = 650 − 400 = RM250
Worked example 7
Puan Rohana's chargeable income is RM28,000. Given that this band is taxed at a flat rate of 3%, calculate her income tax charged.
- Income tax charged = 3% × RM28,000
- = 0.03 × RM28,000 = RM840
Worked example 8
Encik Tan's income tax charged for the year is RM520. Since his chargeable income does not exceed RM35,000, he qualifies for an individual rebate of RM400.
Calculate his income tax payable.
- Income tax payable = income tax charged − rebate
- = RM520 − RM400 = RM120
Source:DSKP KSSM Mathematics Form 4 and 5 (Versi English)
Frequently asked questions
What basic taxation concepts do easy questions cover?
Easy questions test whether you understand terms like gross income, tax relief, chargeable income, and how to subtract reliefs from income to find chargeable income. You'll also practise reading a simple tax rate table to find the tax rate for a given income band.
What is a common error when finding chargeable income?
Students sometimes subtract reliefs from the wrong income figure (using gross income instead of total income after deducting allowable expenses first, where relevant) or forget to add up all applicable reliefs before subtracting. Always list each relief given in the question and total them before subtracting from income.
How should students use a tax rate table correctly?
Identify which income band the chargeable income falls into, apply the correct rate (and any fixed base tax amount stated for that band) exactly as given, and show the calculation step separately before stating the final tax payable. Do not round intermediate values unless the question tells you to.