1) Loss from disposal of shares Shares held in Malaysian public listed company as an investment were sold at loss.
2) Advertising
Promotional samples incorporating company’s name and logo: RM15,000
3) Donations
RM’000
Donation of van to an orphanage 50
Sponsorship for local cultural approved by Ministry of Finance 10
Cash of gift to a politician organization 50
4) Entertainment Catering food and drinks for company’s shareholders at Annual General Meeting
5) Salaries, EPF and Socso
The above expenditure includes:
i) Leave passage for management staff amounting RM112,000.
ii) Salary of disable clerk of RM 1,000 per month.
iii) Recruitment expenses of RM14,000 on employing new officers
6) Royalty payments Royalty payment to a French company made without deduction of withholding tax.
7) Halal certification
The company incurred RM13,000 for the purpose of obtaining halal certification which was issued during the year.
8) The company has unabsorbed capital allowances brought forward amounting 85,000
9) Unabsorbed business loss brought forward from previous year was RM 150,000
Required:
(i) Commencing with the profit before tax, compute the chargeable income and income tax payable of Dream Sdn Bhd for the year of assessment 2018.
Note: You should indicate by the use of the word ‘nil’ any item referred to in the question for which no adjusting entry needs to be made in the tax computation.