Question

1. Naema's salary for a month is RM7 526. She needs to contribute her salary for income tax.

a) Find her annual salary and compute her average tax rate for year 2019.

Income bracket Tax rates Income Tax owed Avera e tax rate

RMO - RM 20 000 0%

RM20 001 - RM 40 000 14 0/0

RM40 001 - RM 60 000 21 %

RM60 001 and above 24 %

(5 Marks) b) Find the marginal tax rate if her salary increases to RM8,455.

Income bracket Tax rates Income Tax owed Mar inal tax rate

RMO - RM 20 000 0%

RM20 001 - RM 40 000 14 %

RM40 001 - RM 60 000 21 %

RM60 001 and above 24 %

(5 Marks)

[Total: 10 Marks]

Answer 1

1.a)

$7526\times12=90312$

$Tax=0.24\times90312=21674.88$

b)

$8455\times12=101460$

$Tax=0.24\times101460=24350.40$