TAX 1: Pre Post Test Employment Income

Which of the following is NOT considered employment income under Section 4(b) of the Income Tax Act 1967?

• Salary and wages

• Annual bonuses

• Business profits from trading

• Employment perquisites

Under Malaysian tax law, when is employment income generally considered taxable?

• When it is earned

• When it is received

• At the end of the tax year

• When it is declared to IRB

What is the basic principle of taxation for Malaysian residents regarding employment income?

• Only Malaysian-sourced income is taxable

• Only foreign-sourced income is taxable

• Worldwide income is taxable

• Only income exceeding RM100,000 is taxable

Which of the following is a fundamental requirement for expense deduction against employment income?

• Must be a revenue expense

• Must be a capital expense

• Must be personal in nature

• Must be incurred before employment begins

What is the maximum tax-exempt allowance for work-related travel annually?

• RM5,000

• RM6,000

• RM7,000

• RM8,000

Why are initial clothing purchase costs typically non-deductible?

• They are considered personal expenses

• They are considered capital expenses under s39(1)(b)

• They are not work-related

• They are already tax-exempt

Which statement best explains the tax treatment of non-residents in Malaysia?

• They are taxed on worldwide income

• They are taxed only on Malaysian-sourced income

• They are exempt from all taxation

• They are taxed only on investment income

Why is travel between home and regular workplace NOT deductible?

• It is considered a private expense

• It is a capital expense

• It is already tax-exempt

• It is covered by basic salary

How are entertainment expenses treated for tax purposes when an entertainment allowance is provided?

• They are fully deductible

• They are partially deductible

• They are not deductible if allowance is received

• They are deductible only if documented

Which principle explains why professional subscription fees are deductible?

• They are capital expenses

• They are wholly and exclusively for employment

• They are personal development costs

• They are statutory requirements