A company or a body of persons carrying on a business or businesses is resident in Malaysia for the basis year for a yaer of assessment if at any time during that basis year the management and control of its business or of any one its businesses, are exercised in Malaysia.
A company or a body of persons is resident in Malaysia for the basis year for a year of assessment if at any time during that basis year, the management and control of its affairs are exercised in Malaysia by its directors or other controlling authority.
Example.
Abaxia Ltd, a foreign company has business in Hong Kong, Singapore and Malaysia. All the businesses of the company are managed and controlled in Hong Kong except a board of directors meeting was held in Johor on 11 May 2010 where important policy decision were made.
Abaxia Ltd is resident for YA 2010. where there is no businessess carried on in Malaysia, a company can still be regarded to be tax resident where the management and control of its affairs are exercised in Malaysia by its directors or other controlling authority, for example to a board of management/directors. For an investment holding company, the management and control of its affair includes the management and importanty decisions in respect of finance and investments made.
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