Question 3 TRUE or FALSE (4 marks)

1 An individual is considered to be physically present in Malaysia for a whole day only if he is present in Malaysia for at least half of a day.

2 Section 7(1) of the Income Tax Act 1967 stipulates four sets of circumstances under which an individual would be deemed resident in Malaysia.

3 Non-resident individuals in Malaysia are taxed at a higher tax rate and are not entitled to personal reliefs.

4 Citizens of Malaysia are automatically tax residents.