Nuffnang

Monday 3 November 2014

Tax Residence of Persons

Deemed Resident under Section 7(1B)

Effective from Y/A 2009, where an individual who is a citizen and

a. is employed in the public services or service of a statutory authority; and
b. is not in Malaysia at any day in the basis year for a year of assessment by reason of:-
   i) having and exercising his employment outside Malaysia; or
   ii) attending any course of study in any institution or professional body outside Malaysia which is fully sponsored by the employer.

that individual is deemed to be a resident for that particular year of assessment and for any subsequent basis years when he is not in Malaysia.

Example,
Chandra is appointed as a High Commissioner by the Government to India for a period of five (5) years. He left Malaysia on 1 January 2009 and would return to Malaysia in December 2013.

Chandra is deemed to be a tax resident from YA 2009 to YA 2013 under section 7(1B).

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