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    Tutorial 2 Topic 2: Residence Status of Individuals

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    fujinlim98
    For YA 2018, Mr. Delon is a tax resident of Malaysia as he was present in Malaysia for 183 days that year. For YA 2019, he is not a tax resident as he left Malaysia permanently on 5 October 2019. For YA 2017, Lee is not a tax resident of Malaysia as his employment was short-term, lasting only until 31 December 2017. For YA 2018 and 2019, Lee is a tax resident based on the number of days spent in Malaysia each year. From YAs 2013 to 2018, Macy is not a tax resident of Malaysia as she did not spend 182 days or more in any of those years in Malaysia. For YA 2019, she is a tax resident having been present in

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    Tutorial 2 Topic 2: Residence Status of Individuals

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    For YA 2018, Mr. Delon is a tax resident of Malaysia as he was present in Malaysia for 183 days that year. For YA 2019, he is not a tax resident as he left Malaysia permanently on 5 October 2019. For YA 2017, Lee is not a tax resident of Malaysia as his employment was short-term, lasting only until 31 December 2017. For YA 2018 and 2019, Lee is a tax resident based on the number of days spent in Malaysia each year. From YAs 2013 to 2018, Macy is not a tax resident of Malaysia as she did not spend 182 days or more in any of those years in Malaysia. For YA 2019, she is a tax resident having been present in

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    For YA 2018, Mr. Delon is a tax resident of Malaysia as he was present in Malaysia for 183 days that year. For YA 2019, he is not a tax resident as he left Malaysia permanently on 5 October 2019. For YA 2017, Lee is not a tax resident of Malaysia as his employment was short-term, lasting only until 31 December 2017. For YA 2018 and 2019, Lee is a tax resident based on the number of days spent in Malaysia each year. From YAs 2013 to 2018, Macy is not a tax resident of Malaysia as she did not spend 182 days or more in any of those years in Malaysia. For YA 2019, she is a tax resident having been present in

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    59 views3 pages

    Tutorial 2 Topic 2: Residence Status of Individuals

    Uploaded by

    fujinlim98
    For YA 2018, Mr. Delon is a tax resident of Malaysia as he was present in Malaysia for 183 days that year. For YA 2019, he is not a tax resident as he left Malaysia permanently on 5 October 2019. For YA 2017, Lee is not a tax resident of Malaysia as his employment was short-term, lasting only until 31 December 2017. For YA 2018 and 2019, Lee is a tax resident based on the number of days spent in Malaysia each year. From YAs 2013 to 2018, Macy is not a tax resident of Malaysia as she did not spend 182 days or more in any of those years in Malaysia. For YA 2019, she is a tax resident having been present in

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    Download as docx, pdf, or txt
    of 3

    Tutorial 2

    Topic 2: Residence Status of Individuals

    Question 1

    Mr Delon (a German expatriate), arrived in Petaling Jaya for the first time on 5th July
    2018 to take up employment with Success Sdn Bhd, a Malaysian resident company. On
    20th December 2018, Mr Delon left Malaysia to spend Christmas and New Year in
    Sydney, Australia with relatives. He returned to Malaysia on 10th January 2019.

    Mr Delon completed his contract on 31st August 2019. He stayed on and left for Germany
    on 5th October 2019.

    Required: State, with reasons, the residence status of Mr Delon for the years of
    assessment 2018 and 2019.

    Answer

    No. of days in No. of days Residence


    YA
    Malaysia out Malaysia status
    2018

    2019

    Question 2

    Lee, a China’s citizen, came to Malaysia and was employed by Plus Sdn Bhd. on
    15.05.2017 as technical consultant for a short assignment lasting until 31.12.2017. On
    01.12.2018, Lee again returned to Malaysia as a Project Manager with Wellah Holdings.
    Lee went back to China for sick leave on 10.05.2019. He returned to Malaysia on
    01.06.2019. He rushed back to Beijing on 20.07.2019 upon receiving news that his son
    was involved in an accident. He returned to Malaysia on 01.08.2019. Lee decided to
    resign from his work in Malaysia and returned to Beijing on 14.09.2018.

    1
    Required: State with reasons, Lee’s tax residence status for years of assessment 2017 to
    2019.

    Answer

    No. of days in No. of days Residence


    YA
    Malaysia out Malaysia status
    2017

    2018

    2019

    Question 3

    Macy, an Australian, has the following record of stay in Malaysia:

    Year Period of stay Residence status


    2013 1 June – 31st August
    st

    2014 3rd March – 11th September

    2015 17th January – 20th August

    2
    2016 6th June – 9th August

    2017 Not in Malaysia

    2018 1st May – 31st December

    2019 1st January – 14th February

    Required: You need to determine Macy’s residence status from YAs 2013 to 2019.

    Question 4

    Mr. Richard Nest is an Australian citizen with a broad experience in automotive


    engineering. He, in December 2016, signed a three-year contract with Xenda (Malaysia)
    Bhd. to act as a senior engineer in the Research and Development Division.

    Mr. Nest arrived in Malaysia and reported for duty on 2nd January 2017. On 1st March
    2017, Xenda (Malaysia) Bhd. sent him to its engineering laboratory in Nagasaki, Japan
    for a five-month transfer programme. He returned back safely to Malaysia on 1st August
    2017 and went straight to work. Wanting to take a break from work, Mr. Nest left
    Malaysia on 1st December 2017 to celebrate Christmas with his family in Sydney,
    Australia. He came back to Malaysia to continue his works on 28th December 2017.

    Mr. Nest was then ordered by the Chief Executive Officer (CEO) of Xenda (Malaysia)
    Bhd. to collaborate with the Research and Development Division in Xenda (India) Ltd.
    His departure was on 1st April 2018 and his duration of stay in Mumbai was for six
    months. He received his monthly salaries in Mumbai. He reached Malaysia on 1st
    October 2018 and reported for duty as usual on the very day. Unfortunately, due to the
    bad economic condition and declining orders, Mr. Nest’s contract had been terminated
    effective from 31st December 2018 and he was paid adequate compensation. After
    thinking and deliberating his options, Mr. Nest decided that he would retire from active
    employment and spend his time with his family in Sydney. He departed from Malaysia,
    with no intention to return, on 31st December 2018.

    Required:
    Explain, with reasons, the residence status of Mr. Nest for the Malaysian tax purposes for
    each of the years of assessment (YAs) 2017 and 2018.

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