9. Tax Return (For Individual Cases) - Resident status

 

Individual cases can generally divide into 3 types which they are:-

1. Resident without Business income (Form BE/e-BE)
2. Resident with Business income(Form B/e-B)
3. Non resident (Form M/e-M)

Resident status for individual is determined under sec 7 of ITA 1967:

(1) For the purposes of this Act, an individual is resident in Malaysia for the basis year for a particular year of assessment if-

(a) he is in Malaysia in that basis year for a period or periods amounting in all to one hundred and eighty-two days or more;

(b) he is in Malaysia in that basis year for a period of less than one hundred and eighty-two days and that period is linked by or to another period of one hundred and eighty-two or more consecutive days (hereinafter referred to in this paragraph as such period) throughout which he is in Malaysia in the basis year for the year of assessment immediately preceding that particular year of assessment or in that basis year for the year of assessment immediately following that particular year of assessment:

[Subs. Act 337:s.7]

Provided that any temporary absence from Malaysia-

(i) connected with his service in Malaysia and owing to service matters or attending conferences or seminars or study abroad;

(ii) owing to ill-health involving himself or a member of his immediate family; and

(iii) in respect of social visits not exceeding fourteen days in the aggregate,

shall be taken to form part of such period;

[Am. Act 241:s.6]

(c) he is in Malaysia in that basis year for a period or periods amounting in all to ninety days or more, having been with respect to each of any three of the basis years for the four years of assessment immediately preceding that particular year of assessment either-

(i) resident in Malaysia within the meaning of this Act for the basis year in question; or

(ii) in Malaysia for a period or periods amounting in all to ninety days or more in the basis year in question; or

(d) he is resident in Malaysia within the meaning of this Act for the basis year for the year of assessment following that particular year of assessment, having been so resident for each of the basis years for the three years of assessment immediately preceding that particular year of assessment.

(1A) For the purposes of subsection (1), an individual shall be deemed to be in Malaysia for a day if he is present in Malaysia for part or parts of that day and in ascertaining the period for which he is in Malaysia during any year, any day (within paragraphs 1(a) and (c)) for which he is in Malaysia shall be taken into account whether or not that day forms part of a continuous period of days during which he is in Malaysia.

Which means that :

[Sec7(1)(a)] – in Msia for 182 or ore days which need not be consecutive, deemed to be present for part or parts of that day.

~eg, = if you are arrived Msia in [1 Jan 2011 11.59PM] and leave by [2 Jan 2011 12.01AM] (total duration for ~2 mins), you are in Msia for 2 days.

[Sec7(1)(b)] – in Msia at [1Jan] or [31 Dec] for such year of assessment, and the period staying in Msia is over 182 consecutive days either previous(1 Jan) or following (31 Dec) period.

~eg1. = If you are leaving Msia on [1 Jan 2011], and you arrive before 4 July 2010 (>182 consecutive days), you are resident for YA 2010 & YA 2011

~eg2. =If you are arrived in Msia on [31 Dec 2011], and leave after 30 June 2012(>182 consecutive days), you are resident in Msia for YA2011 & 2012

[Sec7(1)(c)] – in Msia for >90 days, and was either resident or in Msia for 90 days or more in 3 out of 4 immediately preceding years.

~eg = you are in Msia for 90 days in [YA 2011, 2009, 2008,2007 ~ either 3 out of 4 yrs from 2007-2010] you are resident.

[Sec7(1)(d)] – you are resident in YA 2008,2009,2010, you are resident in [YA 2011] even you are not in Msia for year 2011

Further detail , please  refer to :[http://www.ectrustco.com/documents/contents/whitepapers/MalaysianTaxResidence.htm]

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This topic is useful while dealing with expatriate (Global Employment Services), and which you will read on their passport for a long period.

-          Do write down each date on [enter] & [leaving] date in Msia to Excel,

-          then arrange them accordingly,

-          counting base on date that you do written down