(a) Alfred is employed by a Malaysian company under five year contract. His duties include visits, not exceeding 30 days in any one year, to supervise the company’s operations in neigbouring countries. He receives part of his salary (RM4,000 per month) outside Malaysia. In addition, an annual bonus of RM15,000 is paid directly into his bank account in Toronto

Required:

State with reasons, whether the salary and bonus received in Malaysia is subject to Malaysian Income Tax

(b) Vicky, an advocate and solicitor, exercises her profession partly at her chambers in Kuala Lumpur and partly her home in Petaling Jaya. Vicky claims income tax deduction for the travelling expenses incurred between her chambers and the courts.

Required:

Explain the deductibility of the travelling expenses incurred by Vicky

(c ) Stuart, a citizen of Australia residing in Singapore, is a director  of CSB Sdn Bhd, a company resident in Malaysia. He received directors fees of RM15,000 from the company for the year ended 31 December 2018. He spends a total of 70 days in a year in Malaysia, attending meetings of the board of directors.

Reequired:-

State, with reasons, whether the directors ‘ fees are subject to Malaysian Income Tax for the year of assessment 2018.

Answer rating: 100% (QA)

Solution a Alfred is liable to pay tax for both salary and ... View the full answer