03/02/2025
Do you know that in 2025, dividend is taxable in Malaysia? Malaysia has introduced a 2% tax rate for dividend declaration.
Does this means, a Corporate Shareholder or an Individual Shareholder is MANDATORY to pay the 2% tax whenever there is a dividend declaration?
Letβs dive more into this topic :-
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Malaysia has introduced a 2% tax rate on dividend pays out, effective in 2025.
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Any dividend payment make in Jan 2025 onwards are subjected to 2% tax.
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Financial Year Statements (FYE) 2025.
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The amount must be exceeding of RM100,000.
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This 2% taxable rate is applicable to Individual Shareholder only. Corporate Shareholder are fully exempted.
Next time, if you are the Shareholder (individual) and you want to declare more than RM100,000 dividend, you are subjected to 2% tax rate! What if you declare less than that? Save your worry! There will be no tax on it!
And, if the Corporate Shareholder wants to declare more or less than RM100,000 dividend, they are not subjected to the 2% tax rate!
Unfortunately, LHDN has not come out with the proper guideline on this matter yet. But if you are still not clear on this new regulation and would like to declare a dividend in the future, kindly seek an advice witj your Tax Agent.
Still looking for a Professional Tax Agent? We got you! Call us :-
Azizan - http://wasap.my/60123033840
Lim - http://wasap.my/60168886137