Malaysian Taxation: Individual Residence Status
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Questions and Answers

What is the minimum number of consecutive days an individual must be in Malaysia to be considered a tax resident?

  • 182 days (correct)
  • 120 days
  • 240 days
  • 90 days
  • What is the maximum duration of a temporary absence that is considered part of a period of stay in Malaysia?

  • 14 days (correct)
  • 7 days
  • 21 days
  • 10 days
  • In which year is Marshall considered a tax resident, according to the given information?

  • 2016
  • 2017 (correct)
  • 2018
  • 2019
  • What is the term for the year in which the income is derived, in relation to Malaysian taxation?

    <p>Basis Year</p> Signup and view all the answers

    How many days was Nari Jong absent from Malaysia on a social visit?

    <p>11 days</p> Signup and view all the answers

    What is the Year of Assessment for which Nari Jong is considered a tax resident, according to the given information?

    <p>2018</p> Signup and view all the answers

    What is the minimum period of stay in Malaysia to be considered a tax resident under S. 7(1)(a)?

    <p>182 days</p> Signup and view all the answers

    What is the condition for an individual to be considered a tax resident under S. 7(1)(b)?

    <p>In Malaysia for a period of less than 182 days and that period is linked to another period of 182 or more consecutive days</p> Signup and view all the answers

    What is considered as a temporary absence for the purpose of tax residency?

    <p>Absence due to service matters or attending conferences or seminars or study abroad</p> Signup and view all the answers

    How does temporary absence affect the consecutive day requirement for tax residency?

    <p>It is included in the consecutive day requirement</p> Signup and view all the answers

    What is the purpose of the 'bridging two periods' rule in tax residency?

    <p>To include temporary absence in the consecutive day requirement</p> Signup and view all the answers

    What is the minimum period of stay in Malaysia for an individual to be considered a resident?

    <p>90 days</p> Signup and view all the answers

    Why is it important to determine an individual's tax residency status in Malaysia?

    <p>To determine the individual's tax obligations in Malaysia</p> Signup and view all the answers

    How does a temporary absence affect an individual's tax residency status in Malaysia?

    <p>It is considered as part of the period of stay</p> Signup and view all the answers

    What is the consecutive year requirement for an individual to be considered a resident in Malaysia?

    <p>3 out of the 4 immediately preceding years</p> Signup and view all the answers

    What is the basis year for determining an individual's tax residency status in Malaysia?

    <p>Year of Assessment</p> Signup and view all the answers

    Can an individual be considered a resident in Malaysia if they stay in the country for a period or periods amounting in total to 90 days or more in a single year?

    <p>Yes</p> Signup and view all the answers

    How does a social visit affect an individual's tax residency status in Malaysia?

    <p>It is not considered a period of stay</p> Signup and view all the answers

    Study Notes

    Individual Residence Status in Malaysia

    • A resident in Malaysia is determined by the number of days spent in the country.
    • There are three conditions to determine residence status:
      • Section 7(1)(a): In Malaysia for a period or periods amounting in total to 182 days or more.
        • The period of stay need not be consecutive.
      • Section 7(1)(b): In Malaysia for a period of less than 182 days and that period is linked by or to another period of 182 or more consecutive days.
        • Temporary absence forms part of the 182 or more consecutive days.
        • Temporary absence refers to:
          • Absence due to service matters or attending conferences or seminars or study abroad.
          • Absence due to ill health (self or immediate family member).
          • Social visits not exceeding 14 days in total.
      • Section 7(1)(c): In Malaysia for a period or periods amounting in total to 90 days or more and in 3 out of the 4 immediately preceding years, the individual is either:
        • Resident.
        • In Malaysia for a period or periods amounting in total to 90 days or more.

    Examples of Residence Status

    • Marshall was a resident in Malaysia for YA 2017 as he was in Malaysia for 88 days in 2017, which is linked by a period of more than 182 consecutive days in 2016.
    • Nari Jong was a resident in Malaysia for YA 2018 as she was in Malaysia for 3 days in 2018, which is linked by a period of more than 182 consecutive days in 2017.

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    Description

    Test your understanding of individual residence status in Malaysia, including the rules and requirements for tax residency. Learn about the 182-day rule and its implications for taxation. This quiz is based on the Fifth Edition of A Guide to Malaysian Taxation.

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