# SPM Mathematics Trial 2021 (Kelantan), Paper 2 (Question 14)

Question 14 (10 marks):
Mr Fariss and his wife received annual salaries of RM 79 450 and RM 56 540 respectively in 2020. They each donated RM 645 to a goverment-approved welfare organization in that year. The table 3 shows the information of joint tax assessment and separate tax assessment that can be claimed by Mr Fariss and his wife while Table 4 shows the chargeable income.

 Item Joint tax assessment Separate tax assessment Husband and wife Husband Wife Total income RM 135 990 RM 79 450 RM 56 540 Tax exemption RM 1 290 RM 645 RM 645 Tax relief Individual RM 9 000 RM 9 000 RM 9 000 Lifestyle (limit RM 2 500) RM 2 500 RM 3 150 RM 2 800 Life insurance (limit RM 7 000) RM 7 000 RM 8 688 RM 6 969 Medical insurance (limit RM 3 000) RM 3 000 RM 4 550 RM 2 955 Zakat payment RM 900 RM 800 RM 100
Table 3

 Chargeable income (RM) Calculations (RM) Rate (%) Tax (RM) 20 001 – 35 000 On the first 20 000Next 15 000 3 1501 200 50 001 – 70 000 On the first 50 000 Next 20 000 14 1 8002 800 100 001 – 250 000 On the first 100 000 Next 150 000 24 10 90036 000

Table 4

Calculate the total income tax for Mr Fariss and his wife by using joint tax assessment and separate tax assessments. Next state between the joint tax assessment and the separate tax assessment, which is more suitable to be used by Mr. Fariss and his wife.

Solution:

 Item Joint tax assessment Separate tax assessment Husband and wife Husband Wife Total income RM 135 990 RM 79 450 RM 56 540 Tax exemption – RM 1 290 – RM 645 – RM 645 Tax relief Individual – RM 9 000 – RM 9 000 – RM 9 000 Lifestyle (limit RM 2 500) – RM 2 500 – RM 2 500 – RM 2 500 Life insurance (limit RM 7 000) – RM 7 000 – RM 7 000 – RM 6 969 Medical insurance (limit RM 3 000) – RM 3 000 – RM 3 000 – RM 2 955 Chargeable income RM 113 200 RM57 305 RM 34 471 Base tax RM 10 900 RM 1 800 RM 150 Tax on the next balance Balance = 113 200 – 100 000 = 13 200RM 13 200 × 24% = RM 3 168 Balance = 57 305 – 50 000 = 7 305RM 7 305 × 14% = RM 1 022.70 Balance = 34 471 – 20 000 = 14 471RM 14 471 × 3% = RM 434.13 Tax rebate – RM 0 – RM 0 – RM 400 (Chargeable income ≤ RM 35 000) Income tax payable RM 10 900 + RM 3 168 – RM 900 (Zakat) = RM 13 168 RM 1 800 + RM 1 022.70 – RM 800 (Zakat) = RM 2 022.70 RM 150 + RM 434.13 – RM 100 (Zakat) – RM 400 = RM 84.13
Total income tax for Mr Fariss and his wife by using joint tax assessment = RM 13 168

Total income tax for Mr Fariss and his wife by using separate tax assessment = RM 2 022.70 + RM 84.13 = RM 2 106.83

Thus, separate tax assessment is more suitable to be used by Mr. Fariss and his wife.