Taxation - Residence status

Generally, residence status is determined by the ________.

• income earned by the individual while in Malaysia

• nationality of the individual

• number of days present in Malaysia

• type of employment in Malaysia

Under Section 7(1)(a) of the Income Tax Act 1967, an individual is resident in Malaysia for the basis year for a particular year of assessment if he is in Malaysia for a period or periods amounting in total to ____ days or more.

• 90

• 100

• 150

• 182

Under Section 7(1)(b) of the Income Tax Act 1967, an individual is resident in Malaysia for the basis year for a particular year of assessment if he is in Malaysia for a period of less than 182 days and that period is linked by or to another period of ____ days or more consecutive days.

• 90

• 100

• 182

• 200

Temporary absence under Section 7(1)(b) of the Income Tax Act 1967, refers to:

I Absence due to service matters or studies abroad

II Absence due to ill health of self or immediate family member

III Social visits not exceeding 15 days in total

IV Absence due to attending conferences or seminars abroad

• I, II

• I, II, III

• I, II, IV

• All of the above

Under Section 7(1)(c) of the Income Tax Act 1967, an individual is resident in Malaysia for the basis year for a particular year of assessment if he is in Malaysia for a period or periods amounting in total to ____ days or more and in three out of the four immediately preceding years, he is either resident or in Malaysia for a period or periods amounting in total to ____ days or more.

• 90/90

• 100/40

• 150/30

• 182/90

Under Section 7(1)(d) of the Income Tax Act 1967, an individual is resident in Malaysia for the basis year for a particular year of assessment if he is not in Malaysia at all in the year in question but resident in the following year; and resident in ____ preceding years.

• 2

• 3

• 4

• 5

The significance of being a tax resident in Malaysia for an individual includes:

I Tax rates

II Personal relief and tax rebate

III Taxability of employment income

IV Withholding tax

V Exemption on specific income

• I, II, III

• I, II, III, V

• I, II, IV, V

• All of the above

Which of the following statements NOT true regarding non-residents in Malaysia?

Non-resident individuals will not be taxable if they are:

• employed in Malaysia for 60 days or less

• employed on board a Malaysian ship

• Receiving interest from banks

• Receiving dividends

Citizens of Malaysia are automatically tax residents.

• TRUE

• FALSE

Qualitative considerations are irrelevant in the determination of tax residency in Malaysia.

• TRUE

• FALSE