Professional Documents
Culture Documents
1.0 INTRODUCTION
The concept of resident status is important determine
chargeability of a person on income earned and received.
The scope of charge for both resident and non-resident
individuals is the same from YA 2004 - both are taxed only
upon Malaysian derived and accrued income.
Resident individuals are subject to a scaled rate from 025%. As for non-resident individuals they are subject to a
flat rate of 25%.
2.0 DETERMINATION OF
RESIDENCE STATUS
The ITA 1967 uses a quantitative test in
determining the residence of an individual taxpayer
computed number of days present in Malaysia.
Ascertained by reference to the number of days
an individual was in Malaysia by virtue of Section
7(1) ITA 1967.
There are 4 sets of circumstances by which
an individual is deemed to be a resident in Malaysia.
In the event that an individual does not fall
under any of these circumstances in a particular
basis year, he or she is therefore not resident for
that basis year.
2.0 DETERMINATION OF
RESIDENCE STATUS
in a Basis Year
Example 2.1.1
Haris was in Malaysia for the following periods:
1/1/2014 to 31/10/2014 = 304 days 182 days
1/1/2015 to 31/5/2015 = 151 days 242 days 182 days
1/9/2015 to 30/11/2015 = 91 days
Haris qualifies as a tax resident for the Year of
Assessment 2014 and 2015 as the number of days
in Malaysia amounted to 182 days or more in each
basis year.
Example 2.1.2
Aaron was in Malaysia for the following periods:
1/7/2013 to 31/12/2013 = 184 days 182 days
1/2/2014 to 28/7/2014 = 178 days 182 days
1/3/2015 to 31/10/2015 = 245 days 182 days
Exercise 2.1.a
Mr. Don recorded the following periods of stay in
Malaysia:
1.4.2015 - 30.6.2015
91 days
In Malaysia
1.7.2015 31.7.2015
31 days
Exercise 2.1.a
Mr. Don recorded the following periods of stay in
Malaysia:
1.4.2015 - 30.6.2015
In Malaysia
91 days
1.7.2015 31.7.2015
31 days
DAYS
January
31
February
28/29
March
31
April
30
May
31
June
30
July
31
August
31
September
30
October
31
November
30
December
31
TOTAL IN A YEAR
365/366
182 days
Year 2014
Year 2015
182 days
Jan1
Year 2014
Dec 31
Year 2015
31/12/2015
1/1/2001 to 28/2/2001
1/1/2002 to 31/5/2002
YA
Basis Year
No. of
Days
Status and
Section
2000(PYA)
1999
92
R Sec 7(1)(b)
2000 (CYA)
2000
243
R Sec 7(1)(a)
2001
2001
59
NR
2002
2002
273
R Sec 7(1)(a)
2003
2003
31
NR
No. of Days
2014
204
R Sec 7(1)(a)
2015
59
R Sec 7(1)(b)
2014
2015
2014
2015
No. of Days
2011
183
R Sec 7(1)(a)
2012
89
NR
2013
334
R Sec 7(1)(a)
2014
214
R Sec 7(1)(a)
2015
92
R Sec 7(1)(c)
No. of days
91
90
92
91
No. of days
91
90
92
91
YA
No. of days
2012
2013
2014
2015
91
90
92
91
No. of Days
2011
214
R Sec 7(1)(a)
2012
56
R Sec 7(1)(b)
2013
92
NR
2014
92
R Sec 7(1)(c)
2015
243
R Sec 7(1)(a)
history in Malaysia:
20 days
107 days
273 days
245 days
110 days
2007
2008
2009
2010
2011
R
No. of Days
2011
245
R Sec 7(1)(a)
2012
41
R Sec 7(1)(b)
2013
272
R Sec 7(1)(a)
2014
Nil
R Sec 7(1)(d)
2015
243
R Sec 7(1)(a)
No. of Days
2010
196
R Sec 7(1)(a)
2011
16
R Sec 7(1)(b)
2012
196
R Sec 7(1)(a)
2013
106
R Sec 7(1)(c)
2014
Nil
R Sec 7(1)(d)
2015
245
R Sec 7(1)(a)
Yes
Yes
No
Tax resident
Stay in Malaysia for 90 days or more but less than 182 days
under
No
Yes
of the
No
Not Resident
Section 7(1)
Yes
Income tax
Act 1967
4.0 BENEFITS OF
RESIDENCE STATUS
1. The scope of charge for both resident and
non-resident individuals is the same from YA
2004 --- Both are taxed only upon Malaysian
derived and accrued income.
2. Resident individuals are subject to a scaled
rate from 0-25%. As for non-resident
individuals they are subject to a flat rate of
25%.
3. Resident individuals are entitled to individual
tax relief (sections 46 to 50) such as self,
wife, child and etc. Non-residents are not
entitled to such relief.
4.0 BENEFITS OF
RESIDENCE STATUS
4. Resident individuals are entitled to a rebate if
their chargeable income is less than RM35,000.
Non-residents are not entitled to the rebate.
5. Numerous types of income are exempted from
tax only in the hands of resident individuals:
a) Royalties from literary or artistic work.
b) Income from cultural performance approved by
Minister.
c) Income from musical composition.
4.0 BENEFITS OF
RESIDENCE STATUS
6. Numerous types of income are exempted from
tax both in the hands of residents and nonresidents:
a) Pension income derived from Malaysian
employment paid by approved scheme.
b) Interest income from financial institution.
7. Withholding tax is applicable upon contract
payment, interest, royalty, and section 4A
income payments made to non-residents only.
THANK YOU.