EMPLOYMENT INCOME , DIVIDEND , INTEREST INCOME - DIVIDEND
3 important questions on EMPLOYMENT INCOME , DIVIDEND , INTEREST INCOME - DIVIDEND
What is the tax rate on dividend income exceeding RM100,000?
A 2% tax is imposed on dividends exceeding RM100,000 received by individuals from Malaysian resident companies. This dividend is deemed derived from Malaysia.
To which companies is the 2% tax on dividend income applicable?
The 2% tax on dividend income is applicable to STD from listed and unlisted companies.
What types of dividends are not applicable to the 2% tax?
Dividends not applicable to the 2% tax include:
- Sourced outside Malaysia (FSI)
- Profits of companies with pioneer status & RA
- Dividends received by residents from Labuan entities
- Profits distributed by KWAP, LTAT, ASNB, or unit trust
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