Posted by speakup > 2 months ago | Report Abuse

no wonder many reits last minute selldown yesterday
because insiders already knew Pmx want 2% tax on dividends

Posted by treasurehunt > 2 months ago | Report Abuse

Funny computation from the author. What's the transaction costs for offloading RM 2 million shares and buy back again? 2% tax on dividend is peanut to investors.

Posted by Income > 2 months ago | Report Abuse

Repost:
Posted by getingreal > Oct 19, 2024 2:02 PM | Report Abuse

I am a foreign investor and have a portfolio of Malaysian counters most that I have accumulated over the last 30 years. I am retired, and I live quite comfortably on my Dividend Income. My Dividends on my Malaysian Stocks exceed RM100K per year so this new 2% tax catches me. I issue I have is not paying 2% on dividends I receive over RM 100k, it's how that's processed. As of now I don't have taxable Malaysia income as my dividend income was taxed already. With this proposed new tax Now I will have taxable income in Malaysia requiring me to file a Malaysian tax return. This is not a simple matter. As a foreigner I will be required to engage a registered Malaysian Tax Agent (Cost RM10,000 to register with one) and they will file my returns each year charging me 250 for each source of income (say 20 counters x 250= RM 5.000 per tax return).
The cure is relatively simple, I will sell most of my Malaysian shares to ensure my total dividends in Malaysia remain less than RM100,000. I will take the proceeds sell Ringgit and buy Singapore Dollars to invest the equivalent funds in Singapore. The Singapore dividends will not be taxed in Singapore or Malaysia. I will sell Maybank and buy UOB. Bad for Malaysia as my funds are withdrawn from Malaysia, and good for Singapore as I invest there instead. Dividend yield Maybank Vs UOB is quite similar. This I avoid the hassle, and the costs associated with having to deal with tax returns in Malaysia.


Income
11707 posts
Posted by Income > Oct 19, 2024 3:58 PM | Report Abuse X

Foreigner can run＆invest in Spore or other place. But rich helividend Sslee can't run to invest and get dividend shares in Spore。

Posted by Income > 2 months ago | Report Abuse

According to an industry expert, stocks with high dividend yields might be sold off before the dividend date to avoid the new tax.

"This 2.0 per cent dividend tax is not welcome by the capital market, but it is applicable to those active big investors.

"Assuming an investor holds 200,000 shares of Maybank (at RM10 it is worth RM2 million, which yields 7.0 per cent tax ), his dividend income would be RM140,000.

"So he will choose to sell on the date of his 200,000 shares. He can then buy back on ex-date," the expert who requested to comment on condition of anonymity told Business Times.


？



Bo-do I why must sell and buy back after ex-date for maybank?
People will buy other shares without dividends
why must hold maybank and avoid dividend by sell and buyback after ex －date?

Posted by hng33 > 2 months 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 StarOfTheBull > 2 months ago | Report Abuse

Assuming brokerage fee is 0.2%.
Sell RM2 million of contract value you pay brokerage fee of RM4,000, buy back you pay another RM4,000. Total brokerage to pay is RM8,000.
2% tax on dividend of RM140,000 is RM2,800.
Moreover, no guarantee that person can buy that share back at lower price. Therefore it is not a good idea to sell and buy back for the sake of avoiding the 2% dividend tax.

Posted by hng33 > 2 months ago | Report Abuse

No really, market share price will adjust down to reflect amount of dividend after ex-date.

Under normal circumstances market share price will reflect up more at time company declare dividend, and adjust down more once dividend is ex for entitlement.

Posted by s3phiroth > 2 months ago | Report Abuse

Say if your dividen yield = 5%, 2% on the DY = 5% * 2% = 0.1% of your portfolio value only. Hope u guys panic and sell at -10% on next monday.

Posted by StarOfTheBull > 2 months ago | Report Abuse

"Share price up upon dividend declared, share price down on ex dividend date, lower than ex dividend price."

Although it is not wrong, nonetheless this is typical speculators or short term players' point of view. Peace ✌️

Posted by gohkimhock > 2 months ago | Report Abuse

The impact of this change is limited to dividend amounts exceeding RM100k. Everyday retail traders will not be impacted by this adjustment as the majority of individuals do not receive such substantial dividend payouts.

Posted by Income > 2 months ago | Report Abuse

Posted by StarOfTheBull > Oct 19, 2024 7:16 PM | Report Abuse

Assuming brokerage fee is 0.2%.
Sell RM2 million of contract value you pay brokerage fee of RM4,000, buy back you pay another RM4,000. Total brokerage to pay is RM8,000.
2% tax on dividend of RM140,000 is RM2,800.
Moreover, no guarantee that person can buy that share back at lower price. Therefore it is not a good idea to sell and buy back for the sake of avoiding the 2% dividend tax.

？

The problem is not paying 2% dividends
the problem are if you have small shares quantity in 20 counters, and all the 20 counters pay once or twice dividends a year you need to do e-filling all of them according to date, units ＆dividends to Lhdn. Time consuming job. Hope you see the problems.

Posted by Income > 2 months ago | Report Abuse

Lhdn with a click of a button can know how many counters paying dividends and the frequency of dividends that u received according to date. If U miss declare two times your dividends, you will be saman for fraud and pay big penalties.

Posted by Income > 2 months ago | Report Abuse

Like GST, the problem isnot GST but the keying in all the numbers of transactions per items that you sell，
do you have have the time to do that?

Posted by StarOfTheBull > 2 months ago | Report Abuse

I think you are not referring to "sell on cum dividend date and buy back on ex dividend date."

As for e-filing, I guess LHDN will have a new e-form to include the 2% tax on dividend. Just sum up your total divided income and it will auto calculate the tax for you if it exceed RM100,000.

Posted by StarOfTheBull > 2 months ago | Report Abuse

* Total income for the year, different dates within that years need not be disclosed. Didn't you do e-filing before?

Posted by Income > 2 months ago | Report Abuse

Posted by StarOfTheBull > Oct 20, 2024 8:15 AM | Report Abuse

* Total income for the year, different dates within that years need not be disclosed. Didn't you do e-filing before?


？


I did dividends declarations b4 singlettier tax for company dividends implemented.
l have to fill in what companie s, the total amount of dividends

U need to keep all the supporting documents of dividends payment s，




What information is required for the method of payment for dividends tax to Lhdn e-filling?

Sources
hasil.gov.my

To provide the method of payment for dividends tax, the following information is typically required:
1. Payment Method: Specify whether dividends will be paid in cash, set-off against amounts owed, or as a transfer of assets。

2。Bank Account Details: For electronic payments, you must provide your bank account information through the prescribed form submitted to your stockbroker or authorized agent，

3. Supporting Documents: Individuals need identification documents and bank statements, while corporations must submit incorporation certificates and bank statements。

Ensure compliance with legal requirements regarding solvency and documentation。

Posted by StarOfTheBull > 2 months ago | Report Abuse

Oh I see.

Posted by Income > 2 months ago | Report Abuse

What happen if after E-filling dividends received and Lhdn record of your declared dividends received by u are not matching with Lhdn computer records source from Bursa?

U mati liaw，
1st time fraud, how much penalty?
2ndtime fraud, how much penalty?
This goes on and on for the subsequent years.
Gov, profits from penalties from you all.

Posted by Income > 2 months ago | Report Abuse

You all fikir senang senang do e-filing for dividends received?
Think again carefully。

Posted by treasurehunt > 2 months ago | Report Abuse

E-filing dividend is easy. It would be problematic to investors holding many counters through multiple trading accounts. If this is the case, sup sup water to get accountancy services to get it done. Money is not a problem already for big investors and traders.

Posted by treasurehunt > 2 months ago | Report Abuse

Tricky part is LHDN wants to turn your capital gain from stock market into trading gains in the normal course of business and subject to personal income tax.

Posted by treasurehunt > 2 months ago | Report Abuse

Let say an investor invested RM 4 million in some shares with the yield 5% dividend. Dividend income would be RM 200,000 a year. Progressive tax 2% on dividend income merely RM 2,000. Nothing to worry.

Posted by Income > 2 months ago | Report Abuse

Posted by treasurehunt > Oct 20, 2024 12:10 PM | Report Abuse

Tricky part is LHDN wants to turn your capital gain from stock market into trading gains in the normal course of business and subject to personal income tax.

？

This is Lhdn long term plan. Very messy to keep record of in and out of Bursa。
The buy record, sell record，Mati punyakerja
Better get out of bursa － if that thing happen。

Posted by Income > 2 months ago | Report Abuse

Posted by treasurehunt > Oct 20, 2024 12:10 PM | Report Abuse

Tricky part is LHDN wants to turn your capital gain from stock market into trading gains in the normal course of business and subject to personal income tax.

？

But in USA got capital gain from stocks and also deduction of tax for capital loss in stocks also。We only want to tax capital gain from stock but don't give I capital loss redemption. Sayonara if that happens.

Posted by star584 > 2 months ago | Report Abuse

is this applicable to foreigners investing in KLSE?

Posted by Income > 2 months ago | Report Abuse

star584－read this

Repost:
Posted by getingreal > Oct 19, 2024 2:02 PM | Report Abuse

I am a foreign investor and have a portfolio of Malaysian counters most that I have accumulated over the last 30 years. I am retired, and I live quite comfortably on my Dividend Income. My Dividends on my Malaysian Stocks exceed RM100K per year so this new 2% tax catches me. I issue I have is not paying 2% on dividends I receive over RM 100k, it's how that's processed. As of now I don't have taxable Malaysia income as my dividend income was taxed already. With this proposed new tax Now I will have taxable income in Malaysia requiring me to file a Malaysian tax return. This is not a simple matter. As a foreigner I will be required to engage a registered Malaysian Tax Agent (Cost RM10,000 to register with one) and they will file my returns each year charging me 250 for each source of income (say 20 counters x 250= RM 5.000 per tax return).
The cure is relatively simple, I will sell most of my Malaysian shares to ensure my total dividends in Malaysia remain less than RM100,000. I will take the proceeds sell Ringgit and buy Singapore Dollars to invest the equivalent funds in Singapore. The Singapore dividends will not be taxed in Singapore or Malaysia. I will sell Maybank and buy UOB. Bad for Malaysia as my funds are withdrawn from Malaysia, and good for Singapore as I invest there instead. Dividend yield Maybank Vs UOB is quite similar. This I avoid the hassle, and the costs associated with having to deal with tax returns in Malaysia.

Posted by speakup > 2 months ago | Report Abuse

bad move by Pmx
just to earn some brownie point from B40

Posted by Income > 2 months ago | Report Abuse

Boleh land, the T20 ＆M40 need to be taxed to help B40 poor。Full stop. This is the policy sejak Tunku Abdul Rahman。No argue

Posted by EngineeringProfit > 2 months ago | Report Abuse

Not chase away the rich. But prefer to keep the B40 - more reliable vote bank.....hehe

Posted by PureBULL ... > 51 minutes ago | Report Abuse

The 2% tax on dividends > $100,000 is kurang pandai from PMX.
it looks small money in total to be collected for the nation to spend.

just hope that the investing fraternity lobby for it to abortion.

NB:
no RICH love reporting to gov. why brainstorm to chase away the RICH?

Posted by Income > 2 months ago | Report Abuse

Vote lovers la aa

Posted by treasurehunt > 2 months ago | Report Abuse

Quite straight forward in E-filing returns even including devidend received. Simply allocate some specific bank accounts for receiving dividends and file a lump sum figures. Don't need to identify source 1 by 1. LHDN is actually known the transaction when a company make payment in dividend.

Posted by treasurehunt > 2 months ago | Report Abuse

M40 can receive dividends above RM 100,000 in a year? Fake M40? Ha ha

Posted by treasurehunt > 2 months ago | Report Abuse

You have to invest mininum RM 1.7 million in KLSE to fetch a return RM 100k with 6% dividend yield. Apart from stock market investments, you are bound to live in a nice house/condo and lux car. Are you consider M40?

Posted by treasurehunt > 2 months ago | Report Abuse

Don't tell me you live in a flat worth under 100k and a Kancil and investing RM 2 million in KLSE. Ha ha ha

Posted by Income > 2 months ago | Report Abuse

Some ministers also said they are M40 ahh。How? Fake or not?

Posted by Income > 2 months ago | Report Abuse

Posted by treasurehunt > Oct 20, 2024 5:49 PM | Report Abuse

Don't tell me you live in a flat worth under 100k and a Kancil and investing RM 2 million in KLSE. Ha ha ha


？

An Kong & Ah mah now still do that kind of thing drive Kancil, live in flat and invest in Genting. How? U don't believe, go to Genting AGM Iaa.

Posted by Income > 2 months ago | Report Abuse

Acting rich but in fact is poor = fake rich.
Acting poor but in fact rich = Real rich。

Posted by treasurehunt > 2 months ago | Report Abuse

Weirdo is very less nowaday. People can't stand of being looking down with living in low costs and Kancil. Nice girl also no hew.. ha ha

Posted by treasurehunt > 2 months ago | Report Abuse

Ah Kong go to Genting to look see look see girls and show off at the same time. Where got driving Kancil to Genting and invested more than 2.5m to earn dividend.

Posted by Income > 2 months ago | Report Abuse

I said Ah Kong ＆Ah mah went to Genting AGM not Genting Casino. U please read again.

Posted by star584 > 2 months ago | Report Abuse

all he cares about is the number of votes

Posted by gohkimhock > 2 months ago | Report Abuse

The most effective method for preserving the nation's well-being is by decreasing the size of the excessively staffed civil service sector. There are no alternative solutions available.

Posted by qqq47660 > 2 months ago | Report Abuse

d by gohkimhock > 5 hours ago | Report Abuse

The most effective method for preserving the nation's well-being is by decreasing the size of the excessively staffed civil service sector. There are no alternative solutions available.
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