Question

10 Temporary absence under Section 7(1)(c) 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

      A      I, II

      B      I, II, III

      C      I, II, IV

      D      All of the above

11 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.

      A      90/90

      B      100/40

      C      150/30

      D      182/90

12 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.

      A      2

      B      3

      C      4

      D      5

13 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

      A      I, II, III

      B      I, II, III V

      C      I, II, IV, V

      D      All of the above

Answer 1

Ans 10: D (All of the above)

Ans 11: D (182/90)

Ans 12: B (3)

Ans 13: D ( All of the above)

Explanations:

For Q.No 11:

Under Part II, Section 7 of the Income Tax Act, 1967, the Malaysian government considers an individual – regardless of their nationality – a tax resident if that individual fulfills one of the following criteria.

• The individual has been resident in Malaysia for 182 days of the tax year;

• The individual has been a resident in Malaysia for less than 182 days of the tax year, but was a resident in the country for a total of 182 consecutive days linked to days from the year immediately preceding or following that tax year;

• The individual has been a resident in Malaysia for at least 90 days of the current tax year and was a resident in Malaysia for at least 90 days in three of the four preceding years; or

• The individual will be a resident in Malaysia in the year following and has been a resident in Malaysia in the three years preceding the one being taxed.