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ASCERTAINMENT OF CHARGEABLE INCOME - Coggle Diagram
ASCERTAINMENT OF CHARGEABLE INCOME
BASIS PERIOD (TAXABLE PERIOD)
Individuals
calendar year
Companies
accounting period of 12 months
GROSS INCOME
full amount of income arising from any source before deductions of any allowable expenditure
assessed on receivable basis
ADJUSTED INCOME
gross income from each source reduced by expenditure wholly and exclusively incurred in the production of the gross income
expenditure that qualifies for tax deductions must be revenue in nature
STATUTORY INCOME
AGGREGATE INCOME
consist of:
aggregate of statutory business income, reduced by an amount of b/f business loss
aggregate of other source of income (non-business)
TOTAL INCOME
aggregate income for a YA reduced by deductions allowed in the following manner:
a) Adjusted loss from a business source for the basis period
b) certain pre-operating expenses incurred in respect of approved business venture outside Malaysia
c) gift or donations:
(i) gift of money/donation to Govt, State Govt or local authority
(ii) cash donation to approved institution, shall not exceed 10% of aggregate income
(iii) gift/artefact/manuscript to Govt
(iv) zakat on business paid, not exceed 2.5% of aggregate income
(v) gift or money not more than RM20,000 for the provision of library facilities
(vi) (1) cash contribution towards sports activities
(2) contribution in cash/in-kind for project of national interest
UNABSORBED BUSINESS LOSS CARRIED FORWARD
allow carry forward of unabsorbed business losses for a maximum period of 7 consecutive years
CHARGEABLE INCOME
total income for that year less deduction allowed by the ITA 1967
TAX TREATMENT OF ADJUSTED LOSS FROM A BUSINESS
adjusted loss or current year loss from a business source
used to reduce the aggregate income (business & non-business)
unabsorbed business loss b/f
used to reduce the aggregate statutory business income (ASBI) for a YA
SCHEDULE 4B - QUALIFYING PRE-OPERATIONAL BUSINESS EXPENDITURE
refers to
expenses directly attributable to the conduct of feasibility studies
expenses directly attributable to the conduct of market research or the obtaining of marketing information
expenses by way of fares, maximum to RM400 per day, commencing with the representative's departures from Malaysia and ending with their return to Malaysia
deductions against defined aggregate
