Question

Mr. Singh returned to Malaysia on 1.2.2011 after a five-year absence when he was studying in Australia. He works as an auditor with Sedap Sdn Bhd, a job which requires frequent overseas travel. The following are the particulars of his whereabouts in the period between 1.2.2011 to 31.7.2014:

1.2.2011 – 10.4.2011 In Malaysia

11.4.2011 – 13.7.2011 In Germany (Note 1)

14.7.2011 – 31.8.2011 In Malaysia

1.9.2011 – 29.12.2011 In Austria (Note 2)

30.12.2011 – 31.3.2012 In Malaysia

1.4.2012 – 12.4.2012 In Singapore (Note 3)

13.4.2012 – 1.8.2012 In Malaysia

2.8.2012 – 31.8.2012 In Australia (Note 4)

1.9.2012 – 31.12.2012 In Malaysia

1.1.2013 – 28.2.2013 In Malaysia

1.3.2013 – 31.3.2014 In Japan (Note 5)

1.4.2014 – 31.7.2014 In Malaysia

Notes:

1 On a long vacation.

2 Attending to personal matters.

3 Attending a conference.

4 Sponsored by employer to attend a short course.

5 On a short vacation

Required:

(a) State, with reasons, whether or not Mr Singh is a resident in Malaysia for all the relevant four years of assessment (indicating relevant sections of the Income Tax Act 1967).

(b) Robert was a tax resident in the basis year for the year of assessment 2013. His

total income for the year of assessment 2013 is RM43,000. Explain to Robert the tax advantages he would enjoy as a tax resident.

(c) If in a particular basis year (e.g. basis year 2013), an individual was never in Malaysia for even a single day, is there a possibility for that individual to be a resident for that particular basis year (i.e. basis year 2013)? Support your answers with reference to any relevant provision of the Income Tax Act.

p/s : please provide full answer .

example answer will be like this .

YEAR	TOTAL PERIOD OF DAYS PRESENCE IN MALAYSIA	STATUS	SECTION	EXPLANATION
2009	570 DAYS	RESIDENT	SECTION 7 (1)(A)
2

Answer 1

(a) Residential status

Year	Total days present in Malaysia	Status	Section	Explanation
2011	120	Non resident	Section 7(1)	Mr. Singh is not considered as the resident of Malaysia for tax purposes as he had lived in Malaysia for 120 days only in 2011
2012	323	Resident	Section 7(1)	Mr. Singh is considered as the resident as he lived for 323 days in the year 2012 which is more than 2012
2012	59	Non resident	Section 7(1)	Mr. Singh is not considered as the resident as he had lived for less than 90 days
2014	122	Non resident	Section 7(1)	Mr. Singh is not considered as the resident as he had not lived for 90 days in the three years of the past four years.

(b) Robert will be eligible to obtain various deductions from the income as he is a resident. Robert will be required to pay tax at the rate of 0-8%. The first RM5000 will be exempted.

(c) A person is considered to the resident of Malaysia although he had not resided for any single day if the person is the citizen of Malaysia and is engaged in public services and is exercising the employment outside the Malaysia or is attending any course which is financed by employer then he will be the deemed resident.