NAME OF THE TAXPAYER

COMPUTATION OF STATUTORY BUSINESS INCOME FOR YA….

RM RM
Net profit before tax (as per SOPL) XX
Add: Revenue not included
Sales omitted XX
Drawings (based on market value) XX
Bad debt recovered (if the bad debt is previously allowed and not yet added XX XX
to SOPL)

Less: Non Business Income

Dividend XX
Interest XX
Royalty XX
Rental income XX
Gain on disposal of non current assets XX (XX)

Add: Non allowable expenses

Remuneration to owner (salary, bonus, allowances) XX
EPF - owner XX
EPF for employees (allowable only up to 19% of the total remuneration, any XX
excess is disallowed)
Lease rental - passenger vehicle, deduction restricted to XX
RM100,000 for vehicle ≤ RM150,000 , new vehicle (YA 2002)
RM50,000 for vehicle > RM150,000
Donations (approved or not approved, excluding for Sec.34(6)(h) XX
Bad debt written off (trade debts) NIL
Specific provision of bad debt/ doubtful debt NIL
General provision of bad debt/ doubtful debt XX
Trade debt taken over XX
Loss/ bad debts resulting from employee’s defaulting on a loan XX
Loss/bad debts resulting from advances to employees – part of general term NIL
of employment
Compensation paid for dismissal of employees NIL
Damages XX
Cost of tax appeal XX
Violation of laws – fine and penalties XX
Defalcation by business owner XX
Defalcation by employees (trading loss) NIL
Premium on Keyman insurance – term life policy or PA policy NIL
Premium on Keyman insurance –whole life policy or endowment policy XX
Entertainment expenses:
- to entertain supplier and bankers 50%
allowable
-entertainment allowance to employees 50%
allowable
- to entertain employees NIL
- to entertain clients/customers 50%
allowable
- entertainment business NIL

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- promotional gifts at trade fairs – promoting export NIL
- promotional samples of product of the business NIL
- promotional gifts consisting of logo of the business NIL
- cultural or sporting events to promote the business – open to public NIL
- entertainment relate wholly to sales * NIL
Leave passage for employees – yearly event, within Malaysia NIL
Leave passage – overseas XX
Capital expenditure (initial expenditure, acquisition of assets, improvement XX
to assets, acquisition repair, replacement on WHOLE of the asset)
Repair and maintenance NIL
Replacement on PART of the asset NIL
Renewal expense NIL
Life insurance on business owner, directors of a controlled co, partners in XX
partnership or sole trader
Depreciation XX
Cost of developing website – e- commerce enabled (20% deductible for XX
each YA for 5 years)
Expenditure in respect of translation / publication of books NIL
Provision of library facilities
- Sec 34(6)(g) : Deductible, restricted to RM100,000 ( donation in kinds and NIL
cash contribution)
- Sec 44(8) : Not deductible against gross income XX
(Deductible against aggregate income, restricted to RM20,000)
Social responsibility payment NIL
Musical and cultural group – approved by Minister NIL
Sponsoring Arts or cultural activity
– tax deduction up to RM700,000 (aggregate)
- tax deduction up to RM300,000 (foreign) w.e.f YA2017
Secretarial fees (deduction up to RM5,000) XX
Tax filing fees (deduction up to RM10,000 for preparation of income tax XX
return and GST return form)
Employee benefits – payment of monthly bills of broadband and phone, NIL
PDA,mobile phone, pager
Interest expense on business loan NIL
Rental expense on business premise NIL
Advance rental XX

Less: Double deduction

Promotional of export* XX
Remunerations – disabled employee XX
Approved research and development exp. XX
Insurance premium for export/import cargo from local company in M’sia. XX
Maintenance of child care centre XX (XX)
ADJUSTED BUSINESS INCOME
Add: Balancing charge XX
Less: Capital Allowances
Unabsorbed CA – b/f XX
Current year CA XX
Balancing allowance XX (XX)
STATUTORY BUSINESS INCOME XX

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