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    T2 Taxpayer Resident Status

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    CHAN KER XIN
    This document contains 6 questions regarding tax resident status in Malaysia. It provides information on individuals' periods of stay in Malaysia and other countries, and asks the reader to determine their tax resident status for various years based on Malaysia's Income Tax Act 1967. The document also lists advantages and disadvantages of being a tax resident.

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    T2 Taxpayer Resident Status

    Uploaded by

    CHAN KER XIN
    21 views5 pages
    This document contains 6 questions regarding tax resident status in Malaysia. It provides information on individuals' periods of stay in Malaysia and other countries, and asks the reader to determine their tax resident status for various years based on Malaysia's Income Tax Act 1967. The document also lists advantages and disadvantages of being a tax resident.

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    This document contains 6 questions regarding tax resident status in Malaysia. It provides information on individuals' periods of stay in Malaysia and other countries, and asks the reader to determine their tax resident status for various years based on Malaysia's Income Tax Act 1967. The document also lists advantages and disadvantages of being a tax resident.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    21 views5 pages

    T2 Taxpayer Resident Status

    Uploaded by

    CHAN KER XIN
    This document contains 6 questions regarding tax resident status in Malaysia. It provides information on individuals' periods of stay in Malaysia and other countries, and asks the reader to determine their tax resident status for various years based on Malaysia's Income Tax Act 1967. The document also lists advantages and disadvantages of being a tax resident.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    Tutorial 2 – Tax Resident Status of individuals

    BAC 2674 –Taxation 1

    Question 1

    How is an individual’s resident status determined under the Income Tax Act 1967 (as
    amended)

    Question 2

    State advantages & disadvantages of being a tax resident.

    Question 3

    Ahmed was in Malaysia for the following periods;


    1/1/2017 – 31/12/2017 Answer: 365 - Resident Sec 7(1)(a)
    1/1/2018 – 31/1/2018 31 - Residents, Sec 7(1)(b), Linked by
    1/1/2019 – 30/9/2019 >182 - Resident, Sec 7(1)(a)
    1/2/2020 – 30/6/2020 > 90 - Resident, Sec 7(1)(c)

    Determine Ahmed’s tax residence status for the relevant year of assessments.

    Question 4

    Mr. Gustafson Steiner is a German citizen and first arrived in Malaysia on 1 November 2016.
    He left Malaysia permanently for Germany on 1 August 2020. His pattern of stay in Malaysia
    was as follows:
    Period of stay in Malaysia No of days
    1.11.2016 - 31.12.2016 61 R, 7(1)(b)
    1.1.2017 - 10.7.2017 191 R, 7(1)(a)
    2.9.2017 - 11.10.2017 40
    3.4.2018 - 15.10.2018 186 R, 7(1)(a)
    3.4.2019 - 15.7.2019 104 R, 7(1)(c)
    18.1.2020 - 31.1.2020 14
    8.2.2020 - 30.6.2020 143
    15.7.2020 - 1.8.2020 18 R, 7(1)(c)

    From 1 February to 7 February 2020, he was in Korea for a social visit. And for the period 1
    July to 14 July 2020, he was in Hong Kong on a business trip on behalf of his employer.

    Required:

    Determine the resident status of Mr. Gustafson Steiner for the relevant years of assessment.

    1
    Question 5

    Mr. Arthur Douglas is a citizen of Australia and his pattern of stay in Malaysia was as follows:

    Year No of days stayed in


    Malaysia

    2011 95 NR
    2012 92 NR
    2013 174 NR
    2014 105 >90, R, 7(1)(c)
    2015 92 > 90 R, 7(1)(c)
    2016 0 NR
    2017 365 R,7(1)(a)
    2018 31(Jan) R, 7(1)(b)
    2019 223 R, &7(1)(a
    2020 181 R, 7(1)(c)

    He did not stay in Malaysia in the year 2016. The period of stay in the year 2018 was linked by
    his period of stay in Malaysia of 365 days in 2017.

    Required:

    Based on the information provided, determine his tax resident status for each of the year of
    assessment under the Income Tax Act 1967 (as amended).

    Question 6

    Mr. Adam arrived in Malaysia for the first time on 30 May 2015. Thereafter, his pattern of stay
    was as follows;

    Date Number of days


    30/5/20152018- 18/6/2018 (in Malaysia)
    19/6/20152018- 4/7/2018 (holiday in Bali)
    5/7/20152018- 31/8/2018 (Malaysia)
    1/9/20152018- 15/9/2018 (attending conference in Thailand)
    16/9/20152018- 30/11/2018 (Malaysia)
    1/12/20152018- 11/12/2018 (visiting sick father in Oman)
    12/12/2018- 31/1/2019 (in Malaysia)
    1/3/2019- 31/58/2019 (in Malaysia)
    1/6/20192020 - 29/8/20192020 (in Malaysia)
    1/3/2020- 31/5/2020 (in Malaysia)

    Required;

    Determine Mr. Adam’s tax residence status for the year of assessments 2018 to 2020. State
    with reason.

    2
    Q6
    YA 2018 Days Outside  
    30/5/2018- 18/6/201 8 20    
    19/6/2018- 4/7/2018   16  
    5/7/2018- 31/8/2018 58    
    Answer:
    1/9/2018- 15/9/2018   15 Non Tax Resident
    16/9/2018- 30/11/2018 76    
    1/12/2018- 11/12/2018   11  
    12/12/2018- 31/12/2018 20    
      174    
    1/1/2019- 31/1/2019 31    
    1/2/2019-28/2/2019   28 Tax Resident, Sec 7(1)(a)
    1/3/2019- 31/8/2019 184    
      215    
    1/6/2020- 29/8/2020 90    
    1/3/2020- 31/5/2020 92   Tax Resident, Sec 7(1)(a)
      182    
           

    Question 7 – Self revision

    Mr A first arrived in Malaysia on December 1, 2010. He left Malaysia permanently on October


    31, 2017. Mr A has the following record of stay:

    Period of stay Place No of days

    01.12.2010 – 31.12.2010 In Malaysia 31

    01.01.2011 – 31.01.2011 In Malaysia 31


    01.02.2011 – 31.05.2011 In Singapore 120
    01.06.2011 – 31.07.2011 In Malaysia 61
    01.08.2011 – 31.10.2011 In Bali 92
    01.11.2011 – 31.12.2011 In Malaysia 61

    01.01.2002 – 31.03.2002 In Malaysia 91


    01.04.2012 – 14.04.2012 Australia - social visit 14
    15.04.2012 – 31.07.2012 In Malaysia 108
    01.08.2012 – 30.09.2012 In Thailand 61
    01.10.2012 – 31.12.2012 In Malaysia 92

    01.01.2013 – 31.03.2013 In Malaysia 90


    01.04.2013 – 13.04.2013 Seminar in Taipeh 13
    14.04.2013 – 31.07.2013 In Malaysia 109
    01.08.2013 – 31.12.2013 In Hong Kong 153

    01.01.2014 – 30.04.2014 In Hong Kong 120


    01.05.2014 – 31.07.2014 In Malaysia 92

    3
    01.08.2014 – 31.12.2014 In Japan 153

    01.01.2015 – 31.12.2015 In Japan 365

    01.01.2016 – 31.01.2016 In Japan 31


    01.02.2016 – 31.12.2016 In Malaysia 335

    01.01.2017 – 31.01.2017 In Japan 31


    01.02.2017 – 31.10.2017 In Malaysia 273

    Required:

    Determine Mr. A’s resident status for all the years of assessment.

    Answer:

    Mr A’s resident status would be as follows:

    YA Period of stay Residence Status

    2010 1.12.2010-31.12.2010 31 days NR


    2011 1.01.2011-31.01.2011 31 days
    1.06.2011-31.07.2011 61 days
    1.11.2011-31.12.2011 61 days

    153 days R (7(1))b) – “Link


    to” YA 12

    2012 1.01.2012-31.03.2012 91 days


    1.04.2012-14.04.2012 14 days-Home leave
    15.04.2012-31.07.2012 108 days
    1.10.2012-31.12.2012 92 days

    291 days R (7(1)(a))

    2013 1.1.2013-31.03.2013 90 days


    14.4. 2013 – 31.7.2013 109 days

    199 days R (7(1)(a))

    2014 1.5.2014-31.7.2014 92 days R (7(1))c)

    2015 Not in Malaysia - R (7(1)(d))

    4
    2016 1.2.2016 – 31.12.2016 335 days R (7(1)(a))

    2017 1.2.2017-31.10.2017 273 days R (7(1)(a))

    Note:

    (1): The 153 days in 2011 are linked to a period of more than 182 consecutive days in 2012
    i.e. 212 consecutive days inclusive of the 14 days for social visits.

    (2) 31 days in 2010 are not linked to period of 182 or more consecutive days in 2011.
    There are only 153 days in 2011 and they are not consecutive.

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