Posted by ks55 > 4 weeks ago | Report Abuse

So much ambiguity on 2% charged on dividend.

For individual, is it charged on total amount (say rm 100,001), or on the amount less the first 100k (rm 1)? Is the dividend added to normal chargeable income of wage earner (say income of 500k) and charge only 2%? Is it compulsory to include dividend into your normal income?

For business entity. What about dividend received from subsidiary, sub-subsidiary, whether wholly owned or not? What about dividend received from associate company or mere investment in other company?

How is it going to collect the 2% from dividend? Is it straight from the source or wait for the recipient to declare? How about those pensioners not getting any other source of income? Their Income Tax Accounts been closed due to inactive status for years.How are they going to claim back if 2% taxed at source if dividend income is less than 100k?

Posted by treasurehunt > 3 weeks ago | Report Abuse

"The 2 per cent tax will apply to annual TAXABLE dividend income exceeding RM100,000 —so it is imposed only on the TAXABLE dividend income exceeding RM100,000.

https://www.malaymail.com/news/malaysia/2024/10/20/expert-malaysias-new-dividend-tax-aimed-at-t20-could-touch-some-m40-but-minimal-impact-at-2pc-rate/154195