Question

On 1.2.2022 Julia commenced employment with Broadcast (Malaysia) Bhd. She undergone induction and training at the Kuala Lumpur office for 3 weeks between 8.2.2022 until 28.2.2022. She then served the company's office in the Singapore for the next 4 months. She was reassigned to the Kuala Lumpur office commencing 1.7.2022. Required:

i. Justify scope of charges for taxation in Malaysia for the income derived in 2022.
ii. Identify the scope of charge for taxation in Malaysia as Julia bring cash RM20,000 into Malaysia upon being transferred from Singapore to Kuala Lumpur.

Answer 1

The scope of charges for taxation in Malaysia include the income derived by Julia during her employment, both in Kuala Lumpur and Singapore. Bringing cash into Malaysia does not have a direct impact on the scope of taxation.

Step-by-step explanation:

i. The scope of charges for taxation in Malaysia for the income derived in 2022 includes the employment income earned by Julia during her period of employment in Malaysia. This includes the income she earned during the 3 weeks of induction and training in Kuala Lumpur as well as the income she earned during the 4 months she served in the Singapore office. As she was reassigned to the Kuala Lumpur office on 1.7.2022, her income from that point onwards will be subject to Malaysian taxation.

ii. Bringing cash of RM20,000 into Malaysia upon being transferred from Singapore to Kuala Lumpur does not have a direct impact on the scope of charge for taxation in Malaysia. Taxation in Malaysia is primarily based on income earned, and bringing cash into the country does not automatically trigger a taxable event. However, if Julia were to invest or use the cash in a way that generates taxable income, that income would be subject to taxation.