Malaysia Resident Status Quiz and Flashcards: Tax Residency Test

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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?

Basis Year Signup and view all the answers

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

11 days 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?

2018 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)?

182 days Signup and view all the answers

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

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

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

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

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

It is included in the consecutive day requirement Signup and view all the answers

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

To include temporary absence in the consecutive day requirement Signup and view all the answers

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

90 days Signup and view all the answers

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

To determine the individual's tax obligations in Malaysia Signup and view all the answers

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

It is considered as part of the period of stay Signup and view all the answers

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

3 out of the 4 immediately preceding years Signup and view all the answers

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

Year of Assessment 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?

Yes Signup and view all the answers

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

It is not considered a period of stay 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.

Malaysian Taxation: Individual Residence Status