Mr. Lee's tax residency status from 2009 to 2017 is summarized as follows:
1) Non-resident in 2009 as he did not meet any conditions under Section 7(1)(a) to (d).
2) Resident in 2013 under Section 7(1)(b) as he stayed less than 182 days but period was linked to 182 days or more in 2012.
3) Resident from 2011 to 2014 under Section 7(1)(a) as he stayed at least 182 days.
4) Resident in 2015 under Section 7(1)(c) as he was in Malaysia at least 90 days and three of last four years.
5) Deemed resident in
Original Description:
Intro to malaysian law
Original Title
T1 - Introduction to Malaysian Tax & Resident Status (a)
Mr. Lee's tax residency status from 2009 to 2017 is summarized as follows:
1) Non-resident in 2009 as he did not meet any conditions under Section 7(1)(a) to (d).
2) Resident in 2013 under Section 7(1)(b) as he stayed less than 182 days but period was linked to 182 days or more in 2012.
3) Resident from 2011 to 2014 under Section 7(1)(a) as he stayed at least 182 days.
4) Resident in 2015 under Section 7(1)(c) as he was in Malaysia at least 90 days and three of last four years.
5) Deemed resident in
Mr. Lee's tax residency status from 2009 to 2017 is summarized as follows:
1) Non-resident in 2009 as he did not meet any conditions under Section 7(1)(a) to (d).
2) Resident in 2013 under Section 7(1)(b) as he stayed less than 182 days but period was linked to 182 days or more in 2012.
3) Resident from 2011 to 2014 under Section 7(1)(a) as he stayed at least 182 days.
4) Resident in 2015 under Section 7(1)(c) as he was in Malaysia at least 90 days and three of last four years.
5) Deemed resident in
ACADEMIC YEAR 2013/2014 BACHELOR OF ACCOUNTING (HONOURS BBFT2013 T!"!#$%& T'#%($!) 1 * I&#(%+',#$%& #% M!)!-.$!& T!"!#$%& & T!" R/.$+/&,/ %0 I&+$1$+'!). Suggested answer to Q1 Income is not defined under the Income Tax Act 1967. Therefore, based on case law and judicial recedent is rele!ant in determinin" whether receits or "ains are income or caital in nature. In CIT V Shaw Wallace, income was defined to be #periodical monetary returns coming in with a sort of regularity, from a definite source excluding anything in the nature of a mere windfall. $enerall%, if the receits or "ains are connected with the wor&in" caital of a trade, it has been held to be income and if the% are connected with fixed assets, ma% be caital in nature. Suggested answer to Q2 Direct taxes Income tax 'eal roert% "ains tax (etroleum income tax )abuan offshore business acti!it% tax *tam dut% Suggested answer to Q3(a) +lasses of income on which tax are char"eable under the Income Tax Act ,ITA- Indirect Taxes *ales tax *er!ice tax .ntertainment tax $amin" tax +ustoms duties Imort duties .xort duties .xcise duties 1 1967 are/ Section of ITA 19! Sources of inco"e 0,a- $ains or rofits from a business 0,b- $ains or rofits from an emlo%ment 1"eneral 1ublic ser!ant 0,c- 2i!idends Interest 2iscount 0,d- 'ent 'o%alties (remiums 0,e- (ension Annuities or other eriodical a%ments not fallin" under an% of the fore"oin" ara"rahs3 0,f- $ains or rofits not fallin" under an% of the fore"oin" ara"rah Section #A of the Inco"e Ta$ Act 19! 4otwithstandin" the ro!isions of *ection 0 and subject to this Act, the income of a person not resident in Malaysia for the basis %ear for a 5ear of Assessment in resect of1 ,i- Amount aid in consideration of ser!ices rendered b% the person or his employee in connection with the use of %ro%ert& or rights 'elonging to, or the installation or o%eration of an& %lant( "achiner& or other a%%aratus %urchased fro", such erson3 ,ii- Amount aid in consideration of technical ad)ice, assistance or ser)ice rendered in connection with technical "anage"ent or ad"inistration of an& scientific( industrial or co""ercial underta*ing )enture( %ro+ect or sche"e3 or ,iii- ,ent or other %a&"ents, made under an% a"reement or arran"ement for the use of an% moveable property which is derived from Malaysia is char"eable to tax under the Income Tax Act 1967. Suggested answer to Q3(') 2 6ased on *ection 7 of the Income Tax Act 1967, income tax is char"ed for a %ear of assessment uon the income of an% erson accruing in or derived from Malaysia or receiving in Malaysia from outside Malaysia. Suggested answer to Q# A resident erson is char"ed to tax on income accrued in or deri!ed from 8ala%sia and income recei!ed into 8ala%sia from outside 8ala%sia under *ection 7 of the Income Tax Act ,ITA- 1967. 9owe!er, income recei)ed - re"itted into .ala&sia from outside 8ala%sia, i.e. forei"n income ,or o!erseas income- for resident person will be exemted from tax b% !irtue of (ara"rah :; of *chedule of the ITA 1967. <hile a 8ala%sian tax resident company carr%in" on business of banking, insurance( sea and air transport will be char"ed to tax on income arisin" from 8ala%sia and outside 8ala%sia, i.e. tax on world scope basis. Suggested answer to Q/ Chargea'le %ersons .ala&sian source of inco"e (,.) 0oreign source of inco"e (,.) .nci& Ali ,'esident- '81=,=== is accrued in 8ala%sia and taxable based on territorial basis. '8:;,=== received in 8ala%sia is tax exemted under (ara :; of *ch 6 of the ITA 1967. 8s. >anet ,4on1resident- '87=,=== is accrued in 8ala%sia and tax based on territorial basis. '8?6,=== received in 8ala%sia is not taxable as the income is not deri!ed or accrued from 8ala%sia. *atu *dn 6hd ,'esident co. but Not in secialised business- '81:=,=== is accrued in 8ala%sia and taxable based on territorial basis. '8:==,=== received in 8ala%sia is tax exemted under (ara :; of *ch 6 of the ITA 1967. $old 6erhad ,'esident co. in secialised business- '877=,=== is accrued in 8ala%sia and taxable based on world scope basis. '8;==,=== not accrued and not received in 8ala%sia but taxable based on world scope basis. 3 Suggested answer to Q ,a- The inherited amount of '8; million recei!ed b% 8r. Tan from his late father@s estate is not subjected to income tax as it does not fall within the meanin" of income under *ection 0,a- to 0,f- of ITA 1967. It is considered as a gift from his late father to 8r. Tan.
,b- The "ain A rofit of '81 million made b% A+ 6erhad from the disosal of land is to be considered as a caital "ain from its in!estment. It is NOT a revenue gain from carr%in" out its business. Therefore, it will not be subject to income tax but real property gains tax (R!T". B'($T was exemted from 1 Aril :==7 to 71 2ecember :==9C. 9owe!er, if A+ 6erhad is a property developer coman% whose business is sellin" roerties or lands ,tradin" stoc&- then the "ains it made will be considered as revenue gains and it will be subjected to income tax instead of '($T.
,c- The contest riDe of '81==,=== won b% Am% is considered a windfall ,i.e. caital "ain-. It does not fall within the meanin" of income under *ections 0,a- to 0,f- of the ITA1967. ,d- 2i!idend income of '87=,=== recei!ed b% E5 *dn 6hd is subjected to income tax under *0,c- of the ITA 1967 as it is recurrence and reetiti!e. The caital "ain of '86==,=== from the disosal of shares is not taxable as it does not fall within the meanin" of income under an% of *ections 0,a- to 0,f- of ITA1967. Suggested answer to Q!(a) 8r. )ee will be subjected or assessed to 8ala%sian tax as follows/ Section of the ITA 19! T&%e of inco"e 1ear of Assess"ent 2asis %eriod 0,a- 6usiness :=17 1.7.:=17 to 71.1:.:=17 0,b- .mlo%ment :=17 1.1.:=17 to 71.1:.:=17 0,c- 2i!idend :=17 1.1.:=17 to 71.1:.:=17 0,d- 'ental :=17 1.1.:=17 to 71.1:.:=17 The transmission or remission of the foreign interest income into 8ala%sia is tax exemt under Paragraph 28 of chedule ! of the Income Tax Act ,ITA- 1967. Suggested answer to Q!(') 4 *atu 6erhad will be subjected to 8ala%sian tax as follows/ Section of the ITA 19! T&%e of inco"e 1ear of Assess"ent 2asis %eriod 0,a- 6usiness :=17 1.7.:=1: to 7=.6.:=17 0,c- Interest :=17 1.7.:=1: to 7=.6.:=17 0,c- 2i!idend :=17 1.7.:=1: to 7=.6.:=17 As for the remittance of the forei"n rental income of '87=,=== from *in"aore, it will be exemted from 8ala%sian tax under Paragraph 28 of chedule ! of the ITA 1967. Suggested answer to Q3 The differences that influenced the tax liabilit% between a resident and a non1resident indi!idual are as follows/1 4o5 ,esident 4on6,esident 1 6usiness income under *0,a- Taxable if deemed deri!ed from 8ala%sia under *1: Fnl% taxable if carr%in" on business in 8ala%sia or throu"h a (ermanent .stablishment. Alicable where 2ouble Taxation A"reements between 8ala%sia and treat% countries exist : .mlo%ment income deri!ed from 8ala%sia Taxable, irresecti!e of the number of da%s. Tax exemt if the indi!idual satisfies 6= da%s test under (ara"rah :1 of *chedule 6, ITA 1967. 7 Indi!idual tax relief under *06 to *?=, ITA 1967 .ntitled to the ersonal relief deduction. 4ot entitled, excet in cases where non resident relief is entitled to claim the double taxation relief. 0 Income tax rate *cale rate from =G to :6G Hlat rate of :6G ? 'ebates under *6A I *6+, ITA 1967 .ntitled to the rebate claims. 'ebates not "ranted. 6 'o%alties from literar% or artistic wor& Tax exemted under (ara 7:, 7:A I 7:6 of *ch 6, ITA 1967. 4o tax exemtion. 7 Income from cultural erformance aro!ed b% 8inister Tax exemted under (ara 7:+ of *ch 6, ITA 1967. 4o tax exemtion. ; Income from musical comosition Tax exemted under (ara 7:2 of *ch 6, ITA 1967. 4o tax exemtion. 9 <ithholdin" tax on interest, ro%alt%, technical fees, other *0A a%ment and contract a%ment 4ot alicable. *ubject to withholdin" tax, rate ran"in" from 1=G to 1?G or 1=G J 7G. 1= Interest income recei!ed from licensed financial institution in 8ala%sia (rior to 7=.;.:==;, interest income is subject to ?G withholdin" tax under *1=9+. .ffecti!e from Tax exemted under (ara 77 of *chedule 6. 5 7=.;.:==;, interest income is exemted from tax under Income Tax ,.xemtion- ,4o. 7- Frder :==;. Suggested answer to Q9(a) 1A 7eriod of sta& in .ala&sia 4o5 of da&s ,esidence Status ,easons :==9 :7.=9.:==9 to 71.1:.:==9 1== 4on1 'esident It does not fulfilled an% conditions under *7,1-,a- to ,d-. :=1= 1.11.:=1=to 71.1:.:=1= 6: 'esident under *7,1- ,b- *ta% less than 1;: da%s in :=1=and the eriod lin#ed to a eriod of 1;: da%s or more consecuti!e da%s in :=11 The temorar% absence ,social !isit of 17 da%s in Korea- will form art of the consecuti!e da%s. :=11 =1.=1.:=11 to 71.=7.:=11 10.=0.:=11to 71.=7.:=11 9= 1=9 199 'esident under *7,1- ,a- *ta% for a eriod of at least 1;: da%s or more. :=1: =1.=?.:=1:to 71.=7.:=1: 9: 'esident under *7,1- ,c- In 8ala%sia at least 9= da%s and three out of the four immediate recedin" %ears. .ither resident in :=1=and :=11 or in 8ala%sia for 9= da%s or more in :==9 :=17 4ot in 8ala%sia = 'esident under *7,1- ,d- 'esident in 8ala%sia for three %ears of assessment immediatel% recedin" %ear ,i.e. :=1= to :=1:- and resident in the followin" %ear ,i.e. :=10-. Suggested answer to Q9(') Te"%orar& a'sence under *ection 7,1-,b- constitutes/ ,i- in connection with his A her ser!ice in 8ala%sia and owin" to ser!ice matters or attendin" conferences or seminar or stud% abroad3 ,ii- owin" to ill health in!ol!in" himself A herself or a member of immediate famil%3 6 and ,iii- social !isits not exceedin" 10 da%s in the a""re"ate. Suggested answer to Q9(c) The tax residence status can affect an indi!idual@s tax liabilit% in the followin" wa%s/1 ,i- 'esident indi!idual is eli"ible for personal reliefs ,i.e. self, wife, children, contribution to aro!ed schemes I life insurance remiums, boo&s, comuter and etc.-. 4on1 resident will not be "ranted tax relief deductions. ,ii- Tax at gradual " scale rates ran"in" from =G to :6G where a non1resident is taxed at a flat rate of :6G . ,iii- 'esident indi!idual is entitled tax rebate of #M$%% on char"eable income less than '87?,===, Da&at, fitrah or an% other Islamic reli"ious due a%ment of which is obli"ator% and emlo%ment A !isit A wor& ass. ,i!- &mployment of a non resident will be exemted ,(ara"rah :1 of *chedule 6- from tax if the indi!idual is emlo%ed for 6= da%s or less. 7
Unabridged Articles of the Ike Jackson Report :the Future of Hip Hop Business 2020-2050: Unabridged articles of the Ike Jackson Report :The Future of Hip Hop Business 2020-2050, #2