ACCA TX MYS - Overview of MYS Tax System and Residence Status

Which one of the following statement is incorrect?

• Statute laws are enacted by parliament and contained in statute.

• Case laws are enacted laws created by the decisions of courts.

• Public rulings are issued by the DGIR

• Advance rulings are requested by a taxpayer from DGIR

Which one of the following statement is not true?

• Taxpayers may challenge the IRB practices or rulings.

• Case laws are not binding on the Malaysian courts.

• Public rulings are binding on the IRB tax officers and taxpayers.

• Advance rulings are binding on the DGIR and taxpayers.

Which one of the following statement is TRUE?

• The Malaysian tax system is broadly based on a world income scope basis

• Resident companies carrying on business of banking, insurance, shipping and air transport are

  assessed on a territorial basis, that is, wherever the income is derived

• The Malaysian tax system is broadly based on a territorial scope with exemption given on all

  remittances of foreign source of income

• Resident companies carrying on banking business shall be

  charged to tax on a world scope basis

Linda, an American, landed in Kuala Lumpur on 1 May 2023. She started her employment with a

Malaysian company on 5 May 2023. For her annual leave, Linda left Malaysia for a three-week holiday, returning on 22 September 2023. She was then physically present in Malaysia for the rest of the year.

What is Linda’s resident status for the year of assessment 2023?

• Non-resident

• Resident

What constitute ‘management and control’ when determining the tax residence status of a company in Malaysia?

i) The place where the directors meet and meeting were held

ii) Shareholders’ action

iii) Place of incorporation or registered office

iv) Place where AGM and accounting records are kept

• i and ii

• i and iv

• iii and iv

• i only

Andy Chou, an accountant from Hong Kong has the following periods of stay in Malaysia (refer picture):

What is Andy Chou’s residence status for year of assessment 2016?

• Resident

• Non-resident

Imran, an officer with the Ministry of Tourism went on study leave to pursue an MBA course in the United Kingdom (UK). He was sponsored by the Government of Malaysia. His period of stay in Malaysia and UK was as follows (refer picture):

What is Imran’s residence status for year of assessment 2017?

• Resident

• Non-resident

Oliver, a chef from Italy has the following periods of stay in Malaysia (refer picture):

What is Oliver’s residence status for year of assessment 2015?

• Resident

• Non-resident

Oliver, a chef from Italy has the following periods of stay in Malaysia (refer picture):

What is Oliver’s residence status for year of assessment 2017?

• Resident

• Non-resident

Which of the following statements regarding a company’s tax residence status is correct?

• A company is resident in Malaysia only if the management and control of all its businesses are

  exercised in Malaysia

• A company is resident in Malaysia only if all its board meetings are conducted in Malaysia

• The location of a company’s board meetings is irrelevant in determining the company’s

  Malaysian tax residence status

• Where a company does not carry on any business, it is treated as resident in Malaysia if the

  management and control of its affairs are exercised in Malaysia