Paper 9 - Taxation

Chapter 1

Malaysian Tax

• Direct Taxes -
  

• Inc T - INC Tax Act 1967 - Inland Revenue Board (IRB)
• Real Property Gains Tax 1976
  

• Indirect taxes -
  

• Sales tax -STA 1972
• Service tax - STA 1975

1. Statute law -
2. Case law - courts
3. Guidelines -
4.Public rulings - inviting tax audit, X comply
5. Advance rulings - must follow
6. Concessions -

Scope of Charge
Section 3
-YA -charge
-Income - S4
-Person

• Resident Company (Paid up C as at BEGINNING of a YA) >RM 2.5 mil - 27%
• 1st Rm 500 K - 20%
  

-accruing in or derived from Msia
-Received- in Msia -from outside Msia

S4
a B
b E
c DID
d RRPr
e PAPe
f GP
A other income

Employment - place of discharging employment duties

MDI - TAXED

• Companies
  
• FSI BASI - TAXED
• other than BASI
• CR exempt inc a/c
• pay exempt dividend of 2 tiers

• Individual
• Exempted

CHapter 2 - Residence status

Individual - part day = 1 day
-Quantitative test based - No of days - present

S7 (1):
(a) - Minimum 182days physically present in Malaysia
(b) - Short period of x days
-linked to / linked by
-182 consecutive days
- in subsequent year
TA
-connected with service - conference, seminar
-ill health - him immediate family spouse children parents
-Social visit- <14days in aggregate
(c) -
-min 90days
-3 / 4 immediate preceeding years *min 90 * Resident
(d)
-3 immediate preceding years =Resident
-the following year = R

COMPANY
-based - management & control
*Decisions -taken direct & control co.
*Policy / major decision
-anyone
-any time
-basis year
-exercised in Msia

Chapter 3 - Employment INC 1

S2- E definition
-Master & servant