1

1. What are the conditions to be fulfilled in order to qualify for relief of stamp duty under
Section 15A of the Stamp Act, 1949?

(i) The transferor and transferee must be associated companies. Associated company is
defined to mean that one company is the beneficial owner of at least 90% of the issued
share capital of the other, or that a third company is the beneficial owner of at least 90%
of the issued share capital in each of the two companies. The ownership may be direct
or indirect ownership.
(ii) The transferor and transferee should not cease to be associated by reason of a change
in the percentage of the issued share capital of the transferee in the beneficial ownership
of the transferor or a third company.
(iii) The consideration for transfer must not be from a non-associated company.
(iv) The beneficial interest of the property must not have been previously transferred by a
non-associated company.

a) All of the above

b) (i), (ii) and (iii)
c) (i) (ii) and (iv)
d) (ii), (iii) and (iv)

2. Which of the companies below may be eligible for the preferential tax rate post Finance Act
2008?

(i) Perfect Icon Sdn Bhd, tax resident of Malaysia, RM2.5 million share capital with
chargeable income of RM1 million. It is the ultimate holding company of Bright Icon Sdn
Bhd with RM200,000 share capital and RM1 million chargeable income.
(ii) Bookworm, a Malaysian branch of a UK company, RM2.5 million share capital with
RM400,000 chargeable income.
(iii) Low Tide Sdn Bhd, a tax resident of Malaysia, RM2.5 million share capital with
RM500,000 chargeable income. Its holding company is High Tide Sdn Bhd with RM3
million share capital and is an investment holding company.
(iv) Taxes Sdn Bhd, a tax resident of Malaysia, RM2.5 million share capital with a 31
December year end and RM600,000 chargeable income. Its share capital was RM2.6
million on 1 January. Its holding company, Major Sdn Bhd has a RM1 million share
capital.

a) Bookworm Sdn Bhd and Low Tide Sdn Bhd

b) Perfect Icon Sdn Bhd and Bright Icon Sdn Bhd
c) Major Sdn Bhd and Taxes Sdn Bhd
d) Major Sdn Bhd and Perfect Icon Sdn Bhd
 2

3. Which is not a governing section in the Malaysian Income Tax Act, 1967 for withholding tax
on payments to non-residents?

a) Section 107A
b) Section 108
c) Section 109
d) Section 109F

4. Always Late Sdn Bhd (a company with 31 December year end) has made royalty payment
of RM30,000 to a US company during the year 2008 and no withholding tax has been
deducted therefrom. Always Late Sdn Bhd only paid the withholding tax of RM3,000 out of
its own account to the Inland Revenue Board in year 2009. No withholding tax penalty has
been paid on the above late payment of royalty. Based on the above, which of the following
are tax deductible for the year of assessment 2009?

a) Gross royalty payment

b) Withholding tax and gross royalty payment
c) Withholding tax
d) None of the above

5. X Sdn Bhd engaged a non-resident consultancy company, S Inc to provide consultancy

services. S Inc sent Mr Smith to Malaysia on 1 January 2009 and he spent 2 nights in
Mandarin Oriental Hotel. Mr Smith paid for his airfare (RM8,000) and accommodation
(RM2,000) but later claimed the amount as a reimbursement from S Inc. S Inc invoiced X
Sdn Bhd RM150,000 on 10 January 2009 which included RM10,000 reimbursement to Mr
Smith. X Sdn Bhd paid S Inc on 1 February 2009. When is X Sdn Bhd required to pay the
withholding tax to the Inland Revenue Board and on which payment?

a) 28 February 2009; RM148,000 paid to S Inc

b) 2 March 2009; RM150,000 paid to S Inc
c) 28 February 2009; RM140,000 paid to S Inc
d) 2 March 2009; RM140,000 paid to S Inc

6. Partnership from the Malaysian income tax perspective

a) Includes joint ventures, syndicate, Hindu joint family and cases where a party to the
association itself is a partnership between parties who have agreed to combine to carry
on a business
b) Is not a chargeable person
c) Has to file a Form P tax return and pay taxes annually
d) Has to include only business income in the partnership computations
 3

7. Company X Sdn Bhd purchased an asset during the year and used it in business during the
year. Which could be a possible reason for not claiming capital allowance?

a) Company X Sdn Bhd’s policy is to treat assets costing less than RM1,000 as a revenue
expense
b) Company X Sdn Bhd purchased the asset from its holding company in Penang and the
tax written down value of the asset was RM Nil
c) The asset is a second hand asset
d) The purchase price is not at market value

8. Which of the following is taken into account when computing qualifying building
expenditure?

a) Cost of land to construct the building, cost of obtaining local authorities’ approval for
building and cost of clearing the site
b) Legal fees on loan borrowed to construct the building, cost of installing air-conditioning
and salary to construction workers
c) Installation of water pipes, interest expense on loan borrowed to construct building till
completion and legal fees to acquire the land
d) Architect’s fees, legal charges to acquire the building and cost of installing wiring for
electricity supply

9. What is general annual allowance rate for office equipment?

a) 3%
b) 10%
c) 14%
d) 20%

10. A corporate client has informed you, as the company’s tax agent that his company had
recently undergone a series of complex transactions amounting to RM1 million. The CFO is
unsure if the expenses are tax deductible and would like to obtain confirmation. You should
advise him to

a) Obtain a private ruling from the Inland Revenue Board

b) Obtain an advance ruling from the Inland Revenue Board
c) Claim the expense as there may be a good chance it is deductible and make a
disclosure to the Inland Revenue Board if a tax audit arises. This is to avoid the penalty
on underestimation of tax payable
d) Treat the expense as non-deductible as the transactions are not straightforward. The
company has sufficient unabsorbed losses to shield the tax payable.

11. Which of the following is not one of the badges of trade?

a) Activities of investor
b) Contract terms
c) Accounting presentation
d) Motive upon acquisition
 4

12. Change Mind Berhad normally closes its accounts on 31 December each year changes its
accounting date to 30 June and prepares it as follows:

01.01.2008 to 30.06.2009, and subsequently to 30 June each year

Determine Change Mind Berhad’s basis period for YA 2009 and the due date for submission
of Form C.

a) 01.01.2008 to 30.06.2009; 7 months after 30.06.2009

b) 01.01.2009 to 30.06.2009; 7 months after 30.06.2009
c) 01.01.2008 to 31.12.2009; 7 months after 31.12.2009
d) 01.01.2009 to 31.12.2009; 7 months after 30.06.2010

13. Which of the following statements is true pertaining to the Single Tier System of Taxation?

a) Companies which have a Section 108 credit balance must apply the imputation system
b) The single tier system is takes from 1 January 2014
c) Dividends are tax exempt in the hands of shareholders
d) Dividends may be declared to shareholders up to two tiers

14. M Berhad received a RM2 million franked dividend from its subsidiary on 21 May 2009. M
Berhad, with RM1,000 Section 108 credit intends to utilize the franking credits from the
dividend received to further declare a RM2 million franked dividend to the ultimate
shareholder.

a) M Berhad is permitted to declare the RM2 million franked dividend to the ultimate
shareholder
b) All companies can no longer declare franked dividends under the single tier system
c) M Berhad does not have sufficient Section 108 credit as under the transitional period,
Section 110 credit from dividends received cannot be credited into the Section 108
account
d) M Berhad is not permitted to declare the RM2 million franked dividend under the
transitional period as it is a cash dividend

15. Far Away Pte Ltd, a company incorporated in Singapore may qualify as a tax resident of
Malaysia because

a) The board of directors’ meetings are held in Malaysia

b) Its holding company is a company incorporated in Malaysia
c) 75% of its directors are Malaysian citizens
d) It has business operations in Malaysia
 5

16. Mr TY is present in Malaysia as follows:

2004 – 182 days

2005 – 100 days
2006 – 90 days
2007 – 180 days
2008 – 0 days
2009 – 10 days

He is tax resident in Malaysia for the YA

a) 2005 under Section 7(1)(a)

b) 2008 under Section 7(1)(d)
c) 2007 under Section 7(1)(c)

17. _____ of current year losses is allowed for set off for group relief purposes.

a) 30%
b) 50%
c) 70%
d) 100%

18. Double deduction on remuneration expenses to retrenched workers employed by a

company which was introduced during the 2009 Second Stimulus Package is subject to the
following conditions except

a) Workers employed must be Malaysian citizens and residents retrenched from 1 July
2008
b) The remuneration expenses eligible for double deduction do not exceed RM10,000 per
month for each worker and limited to a maximum period of 12 consecutive months
commencing from the first month the employee is employed. Remuneration includes
wages salaries and allowances
c) The employment is on full time basis
d) The worker is employed by the employer to replace a former employee of the employer
for the purpose of carrying out the same or similar function of the former employee
19. What is a corporate taxpayer’s obligation with regard to the furnishing of estimate of tax
payable (Form CP 204)?

a) Form CP 204 should be submitted not later than one month before the beginning of the
basis period for the YA
b) The estimate of tax payable must not be less than 85% of the estimate of tax payable of
the immediately preceding YA, where a revised estimate of tax payable was submitted.
c) The company need not submit Form CP 204 if it had RM Nil tax payable in the
immediately preceding YA
d) Form CP 204 should be submitted not later than 30 days before the beginning of the
basis period for the YA
 6

20. Which is a record keeping requirement in Malaysia for tax purposes?

a) The taxpayer needs to keep only records of the tax computation, tax return and accounts
b) Where the Form C was submitted after the stipulated period, sufficient records must be
kept for 7 years from the date of submission of Form C
c) Where there is an appeal against an assessment, relevant records must be kept for 7
years from the date of the notice of assessment
d) Sufficient records must be kept for 7 years from the end of a particular year

21. How does one determine whether a company is an investment holding company for
Malaysian tax purposes?

a) A company whose activities consist mainly in the holding of investments and not less
than 80% of its gross income other than gross income from a source consisting of a
business of holding of an investment is derived therefrom
b) By looking at the company’s principal activity disclosed in the audited financial
statements
c) If the holding company is an investment holding company, the wholly owned subsidiary
is an investment holding company
d) A company listed on Bursa Malaysia is always an investment holding company

22. Company C received a Form J dated 01.09.2008 for tax due of RM1,500.00. It settled the
amount on 31.05.2009. What is the amount of penalty chargeable?

a) RM150.00
b) RM225.00
c) RM232.50
d) RM300.00

23. Penalty under Section 107C(10) of the Malaysian Income Tax Act, 1967

(i) will be imposed where the tax payable under an assessment exceeds the revised
estimate of tax payable or estimate of tax payable if no revised estimate of tax payable
was submitted by an amount greater than 30% of the tax payable under an assessment
(ii) will be imposed where the tax payable under an assessment exceeds the revised
estimate of tax payable or estimate of tax payable if no revised estimate of tax payable
was submitted by an amount greater than 30% of the estimate/revised estimate of tax
payable as the case may be
(iii) is 30% on the amount under-estimated
(iv) is 10% on the amount under-estimated

a) (i) only
b) (ii) and (iii)
c) (ii) and (iv)
d) (i) and (iv)
 7

24. Which of the following is not a condition for an Approved Operational Headquarters?

a) The employment of at least 3 management/professional personnel

b) Minimum paid-up share capital of RM500,000
c) Minimum annual business spending of RM2 million
d) Provision of 3 qualifying services to related companies outside Malaysia

25. Which of the following expenses does not qualify for income tax deduction?

a) Director's salary
b) Advance office rental payment
c) Lease rental for machinery in excess of RM50,000
d) Voluntary Separation Scheme payment to retrenched employees for downsizing of
operations

26. Which of the following travelling costs are tax deductible?

a) Leave passage within Malaysia for employee and his immediate family for an annual
company family day event
b) Leave passage for a company’s annual trip overseas
c) Leave passage for a company’s expatriate employee which has been duly declared in
the employee’s statement of remuneration
d) All leave passage are not deductible

27. Jupiter Sdn Bhd incurrs interest expense annually arising from a bank loan taken out from
Bank A Berhad in 2007 for the financing of the company's plant and machinery. In 2009, due
to a lower intrest rate charged, the company had taken out a loan from Bank B Berhad for
the settlement of the loan from Bank A Berhad. Select the correct tax treatment.

a) Only the interest expense from Loan A is tax deductible

b) Only the interest expense from Loan B is tax deductible
c) Both the interest expense from Loan A and B are tax deductible
d) Both the interest expense from Loan A nad B are not tax deductible

28. Which of the following is not tax deductible against business income?

a) Depreciation
b) Staff salary
c) Office rental
d) All of the above are tax deductible

29. Which of the following is not a taxable receipt?

a) Advances received from a related company

b) Insurance recoveries on loss of trading stock in fire
c) Waiver of trade debt by creditors
d) Restrictive covenant payment received by a resigned employee
 8

30. For an expense to be deductible, it must be

a) Wholly and exclusively incurred in the production of gross income

b) Wholly and exclusively incurred in the production of gross income and revenue in nature
c) Wholly and exclusively incurred in the production of gross income and not prohibited
under Section 39
d) Wholly and exclusively incurred in the production of gross income, revenue in nature and
not prohibited under Section 39

31. Which of the following income is not chargeable to income tax?

a) Income from sales of goods

b) Income from provision of services
c) Gain from disposal of capital assets
d) All of the above

32. What is the prevailing corporate income tax rate in Malaysia?

a) 20%
b) 25%
c) 27%
d) 28%

33. Mr Tan is an employee of Earth Sdn Bhd. Due to his outstanding job performance in a
project he worked on from 2007 to 2008, he receives a bonus payment of RM20,000 in June
2009. Select the correct statement.

a) The bonus payment is taxable in YA 2007

b) The bonus payment is taxable in YA 2008
c) The bonus payment is taxable in YA 2009
d) The bonus payment is apportioned and taxable in YA 2007 and 2008

34. Which of the following benefits to an employee are tax exempt under Finance Act 2008?

a) Meal allowance, child care allowance up to RM2,400 a month and parking fees
b) Travelling allowance for official duties up to RM6,000 a year, medical benefits for
maternity and parking allowance
c) Telephone bills, petrol allowance between home and work place up to RM6,000 a year
and internet subscription
d) Employer’s own goods where value of the discount is up to RM200 a year, mobile phone
and subsidies on interest on loans up to RM300,000 for housing

35. _________ is not subject to Schedular Tax Deduction.

a) Benefit-in-kind
b) Salary
c) Perquisite
d) Bonus
 9

36. Which of the following constitutes employment income?

a) Salary
b) Director fee
c) Gratuity
d) All of the above

37. What is the limit for personal relief on premium for education or medical insurance?

a) RM5,000
b) RM4,000
c) RM3,000
d) None of the above

38. What is the total personal tax rebate for a husband who elects for joint assessment under
his name and where his chargeable income does not exceed RM35,000?

a) RM350
b) RM700
c) Nil
d) None of the above

39. An individual must be present in Malaysia for at least ___ days to qualify as a tax resident of
Malaysia under Section 7(1)(a) of the Malaysian Income Tax Act, 1967?

a) 60
b) 90
c) 180
d) 182

40. The following personal reliefs are available except

a) Wife relief
b) Employees contribution to EPF
c) Car instalment relief
d) Purchase of books

41. What is the amount of tax to be paid by a Labuan offshore company that carries out offshore
non-trading activities?

a) Nil
b) RM20,000 or 3% of net audited profits
c) 25% of chargeable income
d) USD10,000
 10

42. What is the rate of withholding tax that will apply to payment of interest from Labuan
offshore company to a tax resident in the Netherlerlands?

a) 8%
b) 10%
c) 15%
d) Nil

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries.
With a globally connected network of member firms in 140 countries, Deloitte brings world-class capabilities and deep local
expertise to help clients succeed wherever they operate. Deloitte's 165,000 professionals are committed to becoming the standard
of excellence.

Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients,
commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous learning, challenging
experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility,
building public trust, and making a positive impact in their communities.

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a
legally separate and independent entity. Please see www.deloitte.com/my/about for a detailed description of the legal structure of
Deloitte Touche Tohmatsu and its member firms.

About Deloitte Malaysia

In Malaysia, Deloitte KassimChan is the member firm of Deloitte Touche Tohmatsu, and services are provided by Deloitte
KassimChan and its affiliates.

Deloitte KassimChan is part of Deloitte Southeast Asia—a cluster of member firms operating in Brunei, Guam, Indonesia, Malaysia,
Philippines, Singapore, Thailand and Vietnam—which was established to deliver measurable value to the particular demands of
increasingly intra-regional and fast growing companies and enterprises.

With a team of over 180 partners and 4,000 professionals located in 20 offices, Deloitte Southeast Asia specialists combine their
technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region.

All services are provided through the individual member firms, their subsidiaries and affiliates which are separate and independent
legal entities.

© 2009 Deloitte KassimChan Tax Services Sdn. Bhd.