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Residence status - Coggle Diagram

- - - - 0% - 28%
    - - Flat rate of 28%
      - Withholding tax rate
        
        15% or 10%
  - - - Entitled to claim
    - - Not entitled to claim
  - - - Entitled
    - - Not entitled
  - - - Taxable if deemed derived from Malaysia
    - - Taxable if through a permanent establishment (for example a branch)
  - - - Taxable
    - - Exempted
- - - - Flat rate of 24%
    - - Either 17% or 24% or both rates
        
        Depending on its paid up ordinary capital on the first day of the basis period for a year of assessment
  - - - Interest
      - Royalty
      - Public entertainers
      - Contract payments
      - Technical fees
      - Section 4(f) income paid or credited to non-resident persons (including companies)
- - - - Connected with their service in Malaysia, and
        
        Owing to service matters, or
        
        Attending conference/seminar , or
        
        Study abroad
      - Owing to ill-health involving themselves or a member of their immediate family
        
        Spouse
        
        Children
        
        Parents
      - In respect of social visits not exceeding 14 days in aggregate
        
        Include any form of vacation outside Malaysia besides a vacation to a home country
        
        The day of departure and return are not included in the calculation of days
  - - - He had been a tax resident
      - He was present in Malaysia for 90 days or more
  - - - Can still be a tax resident even if
        
        Less than 90 days
        
        Entirely absent from Malaysia for the whole of the calendar year
      - This will be the case when
        
        The person is in Malaysia for 3 immediate preceding years
        
        Also a tax resident for the following year
- - - - For decision making
      - For holding board meetings
    - - It is the action of the director, and not of the shareholder that determine the resident status of a company
    - - Yes
        
        Carry activities in Malaysia
        
        Conduct at least one board meeting in Malaysia
    - - This would not determine the resident status of a company
    - - This would also not determine the resident status of a company
- - - - Malaysian can be either
        
        Tax resident
        
        Non-tax resident
  - - - A Malaysian citizen, nor
      - A permanent resident
        
        Those allowed to stay in Malaysia permanently
- - - - Various test (four rules)
        
        Uses the number of days the individual is present in Malaysia
        
        This excludes Malaysian citizen employed in Government servant
        
        Public service
        
        Service of a statutory authority
- - - - Due to the immigration policy of the country visited
      - For example
        
        Written confirmation from employer
        
        A used airline tickets
        
        Confirmation from a travel agency
- - - - A citizen of Malaysia
      - Employed in the public service or a service of a statutory authority in Malaysia
    - - By reason of either
        
        Having or exercising their employment outside Malaysia, or
        
        Attending a course of study in any institution or professional body outside Malaysia that is fully-sponsored by the employer