Poopee Sdn Bhd is a company producing wood products and has a Malaysian brand na
ID: 2818424 • Letter: P
Question
Poopee Sdn Bhd is a company producing wood products and has a Malaysian brand name ‘Solid’ which has been duly registered with the relevant authorities. Poopee ’s issued share capital is RM2,400,000 and all of its shares are owned by Malaysian residents.
The following information relates to its year ended 31 December 2017:
Gross sales RM RM
Local market 19,000
Export market (Note 1) 800 19,800
Cost of sales
Depreciation 1,000
Import duties 10
Freight charges 29
Insurance premiums on exports of cargo (paid to a locally
incorporated insurance company) 2
Other deductible expenses 10,859 (11,900)
Other income
Dividend income from a subsidiary in Langkawi, Malaysia 35
Sale of sundry scrap inventory (stock) 1,000
Foreign exchange gains from trade receivables (unrealised) 88 1,123
General and administration expenses
Audit fees 50
Staff remuneration (Note 2) 2,400
Cash donations to Persatuan Bomoh, an approved institution 103
Staff entertainment expenses 18
Leave passages 6 (2,577)
Selling and distribution expenses
Cash contribution to sponsor a local artist’s activity (approved
contribution) 505
Irrecoverable debt written off on a car loan to an employee 39
Advertisement and promotion expenses to promote the
Malaysian brand ‘Solid’ in Berita Harian 9 (553)
Finance charges
Interest expenses (8)
Net Income 5,885
Notes:
1. The export sale was made from Poopee ’s factory in Shah Alam, Malaysia to a
distributor in Brunei. The distributor had not settled the amount of RM800,000 as
at 31 December 2015. The total exports for the current year are expected to be
not more than 5% of total sales.
2. The staff remuneration comprises salaries of RM2,000,000 and the related employees’ provident fund (EPF) contributions of RM400,000
3. The capital allowances claimable for the year are RM1,230,000
4. The chargable income for year of assessment 2016 is RM13,930
Required:
(a) Prepare the tax computation of Poopee Sdn Bhd for the year of assessment 2017. (Malaysian tax)
Explanation / Answer
But there are points which are not considered in the analysis
Now the below table includes the following:-
The above case study is related to tax calculation where we seggregate expenses ,income and other additionals, all the formulas are briefed in the above tables.
And one more point distributor has not settled RM 800000 is to be considered, Then the calculation is as below:-
59182166-800000=RM 58382166
Particular Amount Amount Gross Sales Export Market 80019800 Local Market 19000 80038800 Add Cost of Sales Depreciation 1000 Import Duties 10 Frieght Charges 29 Insurance Premium 2 Other Deductible Expenses 10859 11900 Net Sales (Gross Sales -Expenses) 80036900