Problem: Pioneer Status
Robotics Sdn Bhd ('RSB'), a tax resident company in Malaysia was incorporated on 1 January 2015 and immediately commenced a business in manufacturing electronic household appliances (promoted product). It closes its annual accounts on 31 December.
On 15 October2021, the directors of RSB held a meeting discussing on RSB's direction and plans for 2022. They understand that RSB may be able to claim for pioneer status or investment tax allowance under Schedule 7A of the Income Tax Act, 1967.
Mr James, the financial controller provided the following projected figures for income and expenditure for the next three (3) years of assessment from YA 2022 as follows:
|
Year of Assessment
|
2022
|
2023
|
2024
|
|
|
RM'000
|
RM'000
|
RM'000
|
|
Adjusted income/(loss) from business
|
(1,000)
|
10,000
|
12,000
|
|
Rental income from a shop-house
|
700
|
700
|
700
|
|
Industrial building allowance ('IBA') and capital allowance ('CA')
|
390
|
900
|
2,100
|
|
Approved donation
|
40
|
40
|
40
|
Notes:
• You are to assume that the income tax rate is 24% for all the yearns ofassessments.
• Unabsorbed capital allowance and business losses from the year of assessment 2021 amounting to RM230,000 and RM200,000 respectively.
Task
Computations the projected chargeable income and exempt account for the three years of assessments 2022-2024 assuming the company is applying for a pioneer status.