Question

a) Jane was a tax resident in 2011, 2012, 2013 and is planning to work in Hong Kong

throughout the year 2014. Jane will be returning to Malaysia in February 2015 and will then reside permanently in Kuala Lumpur.

Required:

For the basis year for the year of assessment 2014, determine Jane’s residence

status. Explain and support your answer with relevant sections of the Income Tax Act

1967.

b) In determining the residence status of an individual, certain periods of absence from Malaysia are deemed as “temporary absence” under Income Tax Act 1967.

Required:

Explain the circumstances under which, absence from Malaysia may be considered as “temporary absence” and when such “temporary absence” provisions are applicable.

P/s : EXAMPLE ANSWER WILL IN TABLE LIKE I HAVE PREPARED BELOW .

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.
2015	170 Days	Non resident	Section 7 (1)	Renuka is not considered as the resident as he had lived for less than 90 days.

Answer 1

Year	Total days present in Malaysia	Status	Section	Explanation
2014	0 Days	Resident	Section 7(1)(d)	jane is resident for the 3 immediately preceding basis years.Under this category, an individual can be a resident in Malaysia even though he might never actually have been in Malaysia at all during that basis year.

2015

334 days

resident

section 7(1)

jane was in Malaysia for 182 days or more in a basis year.

answer b)

If a person is in Malaysia in that basis year for a period of less than 182 days days and that period is linked by or to another period of 182 or more consecutive days throughout which he is in Malaysia in the basis year for the year of assessment immediately preceding that particular year of assessment or in that basis year for the year of assessment immediately following that particular year of assessment:

Provided that any temporary absence from Malaysia—

(i) connected with his service in Malaysia and owing to service matters or attending conferences or seminars or study abroad

(ii) owing to ill-health involving himself or a member of his immediate family

(iii) in respect of social visits not exceeding fourteen days in the aggregate, shall be taken to form part of such period or that period, as the case may be, if he is in Malaysia immediately prior to and after that temporary absence.