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RESIDENT STATUS
TOPIC COVERED:
3.1 The concept & importance of
residence status.
3.2 The determination of residence
status.
OBJECTIVE OF STUDY:
To determine the resident status of an
individual according to:
- Sec. 7 (1)(a) 7 (1)(d).
(a)
(b)
(c)
(d)
(e)
(f)
Non-Resident
Scope of charge
Personal deduction
Entitled
Not entitled
Employment income
derived from Msia
Taxable
Exempted if he satisfy
the 60 days test
Yes
No
Exempted
No
Exempted
No
Withholding tax
Not applicable
Applicable
Quantitative test
Determined based on the period of physical presence in
Malaysia for a particular year of assessment
Part of a day will be considered as one day in Malaysia
Ascertained by reference to the number of days an
individual was in Malaysia by virtue of Section 7 of
the Act.
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.
Example 1:
Mr. Aziz recorded the following periods of stay in Malaysia:
01/03/10 30/06/10 In Malaysia
122 days
01/07/10 31/07/10 Seminar in Hong Kong 31
days
01/08/10 30/09/10 In Malaysia
61 days
183 days
Determine the resident status of Mr. Aziz for the YA 2010.
Example 2:
Mr. Aziizur recorded the following periods of stay in
Malaysia:
01/02/10 31/10/10 In Malaysia
273 days
Residence
Status: Relevant Sections
S7(1)(b)
of ITA 1967:
Continue
In Malaysia 182 days
YES
NO
YES
RESIDENT
S 7(1)(b)
NO
YES
YES
NON-RESIDENT
In Malaysia
184 days
201101/01/11 31/01/11
In Malaysia
31 days
Social visit
181 days
3
days
11
days
20 days
In Malaysia
31 days
In Malaysia
185 days
31/12/10
In Malaysia
2011
1 day
90 days
2
days
78 days
12
days
168 days
2010
2011
30 days
day
days
181 days
2008
2009
2010
NR:
95 days
R:
S7(1)(b)
R:
S7(1)(a)
NR:
12 days
2011
RS?
90 days
Example 8:
An individual has the following residence history in Malaysia:
2007 01/03/07 20/03/07
20 days
107 days
273 days
245 days
110 days
You are required to determine his residence status for the YAs
2007, 2008, 2009, 2010 and 2011.
2008
2009
2010
2011
RS ?
Example 9:
Mr. Alif Farish has the following residence history in Malaysia:
2007 11/10/07 31/12/07
82 days
365 days
273 days
201001/04/10 04/04/10
2011 01/04/11 31/12/11
4 days
275 days
Advise Mr. Alif Farish on his residence status for the YAs 2007,
2008. 2009, 2010 and 2011.
YES
NO
YES
NO
S 7(1)(c) : 90 days (R or
90 days for 3 of 4 preceding
BY
RESIDENT
YES
NO
YES
NON-RESIDENT