Posted by Sslee > 1 month ago | Report Abuse

If I bought RCUIDS under my direct holding then 2% tax on dividend.
The 2% dividend tax only applied to individual not company.

Posted by Income > 1 month ago | Report Abuse

Stony is very smart ular。Can't tax Stony。

Posted by Income > 1 month ago | Report Abuse

KUALA LUMPUR, Oct 18 — Income from dividends that crosses RM100,000 will be taxed at a 2 per cent rate starting next year, Prime Minister Datuk Seri Anwar Ibrahim announced today as he unveiled the largest federal spending plan to date.

Anwar, who is also finance minister, said the tax will be applied “progressively” but whether or not this means the tax rate would change the higher the dividends are or would be taxed at a flat rate of 2 per cent is unclear at the moment.

How does it work?

Suppose you invested RM4 million in shares and the company you invested in announced a 3 per cent dividend for the financial year 2025. Your dividend earnings would total RM120,000, which means that income is taxable since it’s above RM100,000.

What’s the tax rate?

That RM120,000 will be taxed at a 2 per cent rate, according to what was said during the Budget presentation in Parliament. Anwar said the tax would apply “progressively” but did not elaborate during the tabling.

Progressive taxation could mean that if your dividend for the year is RM120,000 (at 2 per cent), only the RM20,000 would be taxable.

The other scenario is that the 2 per cent tax rate would apply on the total amount of dividend, so a RM120,000 would amount to RM2,400 in tax that the individual would have to pay.

It’s also unclear if the dividend tax would be charged in tandem with your income tax or separately.

What is getting taxed?

Just dividends. The dividend yield of a stock is the dividend amount paid per share and is expressed as a percentage of the company’s share price. There are companies that pay dividends by allocating shares to the shareholders instead of cash.

Whether or not this would be taxed, or how, is unclear.

Who will likely get taxed?

Hypothetically, anyone receiving dividends from stocks, mutual funds, or other investments will be subject to dividend taxes. This includes individuals and companies.

Posted by Income > 1 month ago | Report Abuse

Who will likely get taxed?

Hypothetically, anyone receiving dividends from stocks, mutual funds, or other investments will be subject to dividend taxes. This includes individuals and companies.


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Sslee Sir,
U are wrong. Company also has to pay 2% dividends tax，
Stony kena tax lah...

Posted by Income > 1 month ago | Report Abuse

It's a cat ＆ mouse game. The cat is the gov.
Who wins? Surely the cat wins.

Posted by The_JQuestion > 1 month ago | Report Abuse

2% on 1 mil only 20K , tony wan run from this... in fact he buy more , cause sure untung SUre rocket sure LIMIT up to the SKIES

Posted by hng33 > 1 month ago | Report Abuse

Dvivdend tax is no only applicable to listed company, but also apply to many small companies which often director of these companies often capitalise on Malaysia Unpropotional tax rate on personal income tax rate 30%, company tax rate 25% and SME tax rate 15%.

Take for example, big listed company director control substantial company stake will intentionally reduce personal wage to avoid paying personal tax 30%. Director in turn will retain company profit for corporate tax rate at 25% or 15% tax in case on SME. These director remuneration will then compensated through high company dividend which director entitle the most and as dividend income is single tier tax at corporate level, therefore all high dividend received by director is TAX FREE. Hence, gov realize these loophole enjoy by these high ent worth director, it need to start tax these high net worth director.

In additional, many big listed company or even SME have many small subsidiary or associate companies under group and many of these director also hold directorship of these small subsidiary or associate which often is most profitable companies under entire group. These inter companies under group if dividend once declare is wholly enjoy by director as group expense before accounted in group financial report

Posted by Sslee > 1 month ago | Report Abuse

If associated companies pay dividend to holding campany tax 2% and then holding company pay dividend to individual shareholders or private holding company tax 2 % then private company pay dividend to shareholders tax 2%.

So how many time government want to tax dividend?

Posted by Income > 1 month ago | Report Abuse

hng33 ，you sangat pandai! Good.

Posted by Income > 1 month ago | Report Abuse

Sslee sir; as many times as gov possible tax 2% dividend tax laa.

Posted by hng33 > 1 month ago | Report Abuse

Sslee

Exactly these is what conglomerate big company is doing. One listed company have numerous subsidiary or associate company. Even SME also form many companies under them to exploit gov tax loopholes. Many director like to employ accountants that offer service to avoid high personal income tax rate 30% which is sharp contras if compared to corporate tax 25% and SME 15%. The best easier way is fragmental profitable company into many small companies via different shareholding status either as 50% JV, 70% subsidiary or 49% associate leve. Director can each appointed in each of these companies to enjoy dividend which is tax at single tier at corporate level either 25% or 15% depending on size of revenue, then, declare big dividend through these level as tax free to entitle Individuals director or share with another company depending on shareholding %. After these done as corporate expense, then only consolidate at group level for retail shareholder portion

Posted by Balian de Ibelin > 1 month ago | Report Abuse

Dump all Bursa shares and reinvest all into Singapore dividend shares.
All foreign sourced income is still tax free until 31 Dec 2026

On 1 January 2027 just balik Tongshan and live like a King in Shenzhen 😁

Posted by paulthesotong > 1 month ago | Report Abuse

Follow Trumpology.. no person income tax just impose ,30 % tax on all imported goods. simple n easy.

Posted by Income > 1 month ago | Report Abuse

Posted by paulthesotong > Oct 19, 2024 8:55 PM | Report Abuse

Follow Trumpology.. no person income tax just impose ,30 % tax on all imported goods. simple n easy.



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Follow Trumpnomic The easiest thing to do than tax 2% dividends。