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Tutorial Chapter 4 - Q

The document contains 6 questions regarding the tax treatment of employment income received by various non-resident individuals for work performed in or related to Malaysia. The questions address scenarios such as a consultant working intermittent periods in Malaysia; an employee seconded to work overseas; an employee stationed in Malaysia but required to work periodically in another country; a civil servant working at a Malaysian embassy overseas; and a non-resident director performing duties outside of Malaysia.

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Parthiban Ban
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302 views

Tutorial Chapter 4 - Q

The document contains 6 questions regarding the tax treatment of employment income received by various non-resident individuals for work performed in or related to Malaysia. The questions address scenarios such as a consultant working intermittent periods in Malaysia; an employee seconded to work overseas; an employee stationed in Malaysia but required to work periodically in another country; a civil servant working at a Malaysian embassy overseas; and a non-resident director performing duties outside of Malaysia.

Uploaded by

Parthiban Ban
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Tutorial Chapter 4 Employment Income (I) Q1 Nancy , from Australia first arrived in Malaysia in June 2008.

. She served as a consultant to Power Engineering Sdn. Bhd. in Kuala Lumpur. Her stay in Malaysia in 2008 is as follows: 1/6/08-15/6/08 4/7/08-13/7/08 1/8/08-10/8/08 11/8/08-21/8/08 1/9/08-29/9/08 Total days Days 15 10 10 11 29 75 employment employment holiday employment holiday

State with reason whether the employment income from Nancy is exempted from tax.

Question 2 In 2007, Ahmad was seconded by his employer to work for the companys subsidiary in Germany. Since then, he has worked for the German company and he received no income from his employer in Malaysia. His monthly remuneration is credited directly into his bank account in Germany. Ahmad plans to send his car which he has bought in Germany back to Malaysia when he return home in January 2012. Discuss whether the car that Ahmad to bring back from Germany is assessable to income tax in Malaysia.

Question 3 Howard signed a contract in Canada with a multinational company. The terms of his contract are:
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He is stationed in Malaysia to render services to the companys client; He is required to spend one month in a year in Singapore to develop the companys business. He is entitled 2 weeks leave in each year. His monthly salary is RM20,000 payable in Canada.

Howard came to Malaysia on 1 January 2007. He was away in Singapore from 1 October 2007 to 31 October 2007, he was on leave from 15 December 2007 to 28 December 2007. His income for the year ended 31 December 2007 was as follows:
a)

salary RM20,000 per month leave pay RM10,000

Is Howard liable to Malaysian income tax? b) Explain the basis of your finding.

Question 4 State , giving reasons whether or not in each of the following circumstances the income from employment is derived/deemed to be derived from Malaysia under the Act: a) Kumar, a Malaysian citizen is employed in the civil service to work as a member of embassy staff with the Malaysian Embassy in London. Sally is employed as a tour operator by Malaysian company. She spends 7 months overseas each year accompanying tourists from Malaysia.

b)

Question 5 An expatriate from New Zealand was on assignment to audit his companys subsidiary in Malaysia. He arrived in Malaysia on 1st October 2006. On 15 November 2006, he left for Thailand to continue his job to audit another subsidiary and stayed there for 5 months. He came back to Malaysia but only for 4 months before he went back to New Zealand. He is non-resident for Malaysia taxpurposes for YA 2006 and 2007. State with reason(s), whether this persons employment income is chargeable to tax for YA 2006 and 2007.

Question 6 Coco Sdn. Bhd. , a company resident in Malaysia, paid directors fees of RM50,000 to Masaki, a non-resident director who carried out his duties in Tokyo. State with explanation, whether or not Masaki is liable to Malaysian income tax.

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