Question 1

Year Duration of stay Totals Days Reasons

s
2015 15 November to 25 11 days 106 days
November
1 December to 31 31 days
December
28 June to 30 August 64 days
Total days in 2015 106 days
2016 28 June 30 August 64 days
9 December to 31 23 days
December
Total days in 2016 87 days
2017 1 January to 5 June 125 days
25 June to 31 July 37 days
Total days in 2017 162 days
2018 12 November to 29 50 days
December
30 December to 4 January 6 days Attend Seminar
2019 5 January to 26 July 203 days
Total days in 2019 203 days
2020 11 May to 20 May 10 days
Total days in 2020 10 days
2021 10 March to 30 April 51 days
18 July to 31 August 44 days
Total days in 2021 95 days

2015: Resident. The individual is in Malaysia for less than 182 days in a basis year.

2016: Not Resident. Total stay in 2016 is 87 days which is considered not and resident in
2016 years

2017: Resident. Total stay in 2017 is 162 days and 19 days when to visited ill brother. Stay
more than 90 days.
2018: Not resident. Total stay in 2018 is 50 days.

2019: Resident. Total stay in Malaysia is 203 days which is more than182 days considered
resident.

2020: Not resident. Total stay in Malaysia is 10 days.

2021: Resident. Total stay in Malaysia is 95 days.

Question 2
The function of capital allowance is to provide a tax break for the wear and tear of fixed
assets used in the course of doing business. Vehicles, machineries, office equipment, as well
as furnishings are just a few types of assets that are commonly employed in the course of a
business.

Expenditure must be of a capital kind and be utilized for business activities in order to qualify
for the deduction. Claims for capital allowances can be filed on the Tax Return Form by
filling out the appropriate section of the form.

For the purposes of ascertaining the business estimated income even during basis period, no
allowable deductions for expenditures that are capital in nature or for the depreciation value
of assets that are used in the production of that business income. Instead, the business
adjusted income is calculated as follows: For capital expenditures that have been incurred,
Schedule 3 of the Income Tax Act 1967 has established many eligible deductions in the form
of allowances, which are detailed in the following section:

Capital allowances are divided into two categories: the initial allowance and the yearly
allowance. The initial allowance is established at a rate of 20 percent depending on the asset's
original cost at the time the capital expenditure is spent, and it is deducted from the total
amount of the capital expenditure.

Annual allowance, on the other hand, is a fixed rate that is provided every year based on the
initial cost of the asset. The yearly allowance is paid for each year until the capital
expenditure has indeed been entirely written off, unless the fixed asset is sold, demolished, or
otherwise disposed of, in whose case a balancing allowance or balancing charge will be
computed, depending on the circumstances.
 Question 3
Question 3(a)
(1) Where any import tariffs have been re-exported either by manufacturer as a component or
component of the any products made in Malaysia, or as the packing, or a component or
ingredient of the packing, of these kinds of manufactured goods, the Director General may,
on such re-export, actually enable to the manufacturer a full drawback of the obligation so
paid, if the goods produced exported have been manufactured on establishments accepted by
the Director General. (2) Where any import taxes are re-exported by the manufacturer as a
component or ingredient of goods employed in the production of such goods, as well as in the
packaging of such goods produced things of this nature; (2) Such products are re-exported
within twelve months of the date on which they were first imported. date on which the import
duty was paid, or any other relevant information a time determined by the Director General,
if any.

Documents to be submitted;

i. Covering letter

ii. Attachment B (Application for duty drawback facility)

iii. Manufacturing license

iv. Registration of Company, Memorandum and Article of

Association, Form 9, 24, 44 & 49

v. Company’s location map

vi. Manufacturing process and work flow process

vii. List of raw materials and finished goods

Additional Application To be submitted when there is any change;

i. Usage and Composition of raw materials

ii. Finished goods

iii. Manufacturing premise address

iv. Duty drawback calculation formula

Documents to be submitted;
i. Covering letter

ii. Attachment B (Application for duty drawback facility)

iii. Manufacturing process and work flow process

Question 3(b)
Chargeable income RM 2,212,000
Tax on first RM600, 000 @ 17% = RM 102,000
Tax on balance 1,612,000@24%= RM 386,880
TOTAL TAX = RM 488,880
Question 4
Question 4 (a)
Advances. Wages that you give to your workers in exchange for services that they will
perform or finish in the future are considered taxable wages for the purposes of payroll
taxation. Advances are not considered taxable earnings if the workers are legally bound to
return the sums that have been granted to them. If you provide advances to workers to cover
expenditures they will incur while providing services for you under an accountable plan, the
advances are not considered taxable pay.

Gifts. The majority of presents that you offer to your workers are assumed to be of a
compensating character by default. Gifts to your workers are treated as taxable earnings for
payroll tax purposes unless you can demonstrate that the gift is associated with an event that
is completely unconnected to your company (for example, an employee's wedding). If the
presents are articles of property with no monetary value, the gifts are not deemed taxable
wages under the Internal Revenue Code (for example, a turkey or a ham). A little donation of
cash does not qualify as an exemption to this rule.

Prizes and honors are given out. Employer-provided prizes and awards are normally
considered taxable compensation, but a noncash prize or award is not taxable if the value of
the prize or award is less than and it is awarded to an employee as part of a length-of-service
or safety-achievement programmed.

Question 4 (b)
Salary (RM 10,000x10) = RM 100,000

Travelling Allowance less travelling expense (1,000x10) - 1,500 = RM 8,500

Housing Allowance ((4,300-300) x10) = RM 40,000

Total Employment Income (RM 100,000 + 8,500 + 40,000) = RM 148,000

The employment income of Martha in the period of 10 months (Feb. 28 to Dec. 2021)
is RM148,500. The car provided by the company is considered as a non-cash benefit there it
is not included in the employment income.