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Chapter 2 - Residence Status For Individual - JAN 2019 PDF
Chapter 2 - Residence Status For Individual - JAN 2019 PDF
• There are:
- S 7(1)(a)
- S 7(1)(b)
- S 7(1)(c)
- S 7 (1)(d)
• Compulsory to follow the sequence (a) then (b)….. (c) and (d)
• You need to do on Year of Assessment basis …. TRY (a), (b), (c)
then (d)….
Make sure NOT leap year = Year/4 = Exact number so the leap year
= point
© 2019, number
Lili Susanti soRights
Samsurijal, All not leap year
Reserved
Section 7(1)(a) Conditions
xxxxxxxxxxxxxxx
Multiple periods
Year 2014
1 2 3
xxxxxx xxxxxxxxx xxxxxxxxx
1 Jan 31 Dec
1 + 2+ 3 = ≥ 182 days
Days
1.1.2018 – 31.5.2018 151
1.6.2018 – 15.6.2018 15
166
16.7.2018 – 4.8.2018 20
186
•Abdul Ghani will be a tax resident by virtue of s 7(1) (a) for 2018
•However if he left Malaysia permanently on 15.6.2017, he would not be a tax
resident as the 166 days did not fulfill the minimum requirement 182 days to
qualify as a resident.
(kalau Abdul Ghani tinggalkan Malaysia 15.6.2017= 166 days, dia bukan
Resident sebab tak cukup 182 hari)
2018
1.2.2018 – 31.10.2018 In M’sia 273
2018
1.2.2018 – 31.10.2018 274 7 (1)(a)
Resident
With effect from YA 2002, the physical presence in Malaysia to form the
LINK BY and LINK TO period has been abolished by Finance (No. 2) act
2002. The temporary absence from Malaysia is also extended to cover
both periods i.e short period and long period.
• In the case of January, the number of days in January 2018 (short period) is
linked by another period of 182 days or more consecutive days (long period)
in the immediately preceding YA 2017.
• Kalau Januari 2018 (pendek) kena tengok tahun sebelumnyer iaitu tahun
2017 (panjang).
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LINKED BY (bersambung tahun sebelumnya)
• To identify whether residence status for YA2018 under S7(1)(b) is to
establish: (MENGENAL PASTIKAN STATUS RESIDENCE YA2018
di mana syarat2 S7(1)(b) – linked by dipenuhi)
(a) Physical presence of at least one day in January 2018 (short period)
Berada di Malaysia sekurang2nya satu hari pada Januari 2018 (tempoh
pendek).
(b) A continuous period of at least 182 days from 31.12.2017 (long period)
INCLUDING TEMPORARY ABSENCE
[tempoh berterusan sekurang2nya 182 hari dari 31.12.2017 (tempoh
panjang)].
(c) Should there are any temporary absence found in the short period or
long period, it will be considered as physical presence in M’sia provided
it satisfies the condition in temporary absence.
(jika ada temporary absence terdapat sama ada dlm tempoh pendek
atau panjang, dikira “BERADA” di Malaysia sekiranya memenuhi
syarat temporary absence).
PLEASE UNDERSTAND THESE THE PRE-REQUISITES
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Example 2.3 – “Linked by” – page 14 & 15
Linked to
xxxxxxxxxxxxxxxxxxxxxx
≥ 182 days
Jan 1 31.12.2019
YEAR 2018 YEAR 2019
Dec 31/2018
Question:
Residence status for YA 2018 and 2019
2018 – Residence; S7(1)(b)
a) The number of days in 2018 is linked to 2019;
b) There is at least 182 consecutive days in 2019;
c) Temporary absence was allowable (14 days) - privisio
d) Mandy is in Malaysia immediately prior to 25.12.2018 and after
7.1.2019 that temporary absence.
xxxxxxxx
Reason:
Fulfilled
1) 90 days in Malaysia; AND
2) For 2015-2018 (He is in Malaysia
2014: > 90 days
2015: Residence
2016: Residence
Reason:
Fulfilled
1) 90 days in Malaysia AND
2) For 2015-2017 (He is in Malaysia
2015: > 90 days
2016: > 90 days
2017: Residence
S 7(1)(d)
Yes No
i) Relief and rebates i) Flat rate of 26%
ii) Scaled rates 0% - 26%
iii) Exemption Section 7(1)(b)
Section 7(1)(a) i) Current calendar year
i) Current calendar year ii) Min 1 day (short period)
ii) Physical presence iii) the day
iii) Min 182 days
iv) Period/periods Link by or Link to
1.1.2011 31.12.2011
Section 7(1)(c) and 31.12.2010 and 1.1.2012
i) Current calendar year A period of
ii) Min 90 days period/s 182 or more consecutive days (long period)
iii) 3 out of 4 immediate preceding years 2010 2012
Temporary absence from part of the 182
Resident or 90 days period/s consecutive days and short period.
i) Connecting with service matter
- attending conference
Section 7(1)(d) - study abroad
i) Current calendar year not required - seminar iii) Social visit ≤ 14 days (in
ii) 3 immediate preceding years = resident ii) Ill health aggregate)
iii) Resident for the following year - himself - exclude holidays / vacations
iv) Apply resrospectively - immediate family
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