Question

Miss Mamamia, an architect from Tanzania, was under an employment contract in Malaysia with Syikin Sdn Bhd since 1 November 2009. Since then, her pattern of stay until she left Malaysia permanently on 31 December 2016 was as follows:

Period of stay                                                Place of stay

01.11.2009 to 31.12.2010                               In Malaysia

01.01.2011 to 30.09.2011                               In Australia doing consultancy work in

connection with her service

01.10.2011 to 31.10.2013                               In Tanzania visiting families

01.11.2013 to 03.07.2014                               In Malaysia

04.07.2014 to 31.07.2015                               In Singapore for holidays

01.08.2015 to 17.11.2015                               In Malaysia

18.11.2015 to 30.11.2016                               In Indonesia for holidays

01.12.2016 to 31.12.2016                              In Malaysia

Required:

(i) Determine the residence status of Miss Mamamia for all the years of assessment

between 2009 and 2016.

(Your answer should state the reasons and the relevant Sections of the Income Tax Act 1967).

P/S: EXAMPLE ANSWER WILL BE LIKE THIS .

Year	Total days present in Malaysia	Status	Section	Explanation
2014	181 Days	Non resident	Section 7(1)	Renuka is not considered as the resident of Malaysia for tax purposes as she had lived in Malaysia for 181 days only in 2014.

(ii) Miss Mamamia has been reliably informed by her colleague that she will have many benefits being a tax resident in Malaysia.

Explain to her the tax benefits of being a resident under the Income Tax Act 1967.

(iii) In determining the resident status of an individual, certain period of absence is deemed to be period of presence under Income Tax Act 1967.

Briefly list and explain the period of deemed presence, together with the relevant

section.

Answer 1

1,

Year	Total days present in malaysia	status	section	Explanation
2009	61	Non resident	7 (1)	Since she has lived only 61 days for the year, she is not considered for tax purpose
2010	365	Resident	7(1)	She is resident in more than 182 days, so she considered for tax purpose
2011	0	Non resident	7(1)	Since she had not lived in any days for the year, she is not considered for tax purpose
2012	0	Non resident	7(1)	She had not lived in any days for the year
2013	61	Non resident	7(1)	Since she lived less than 182 days, she was not considered for tax purposes
2014	184	Resident	7(1)	since she had lived 182 days and more, she is considered as resident
2015	109	Resident	7(1)	Since she had lived more than 90 days in current year and 90 days in previous years, she was considered for tax purposes and considered as resident
2016	31	Non Resident	7(1)	Since she had lived less than 182 days or 90 days, she was not considered for tax purposes

2, Non residents need to Pay flat 28% tax. This is the major benefit to residents of malaysia

3, An individual is considered to be physically present in Malaysia for a whole day although he is present in Malaysia for part(s) of a day Section 7 of income tax act