news

#Budget2025: New 2% Tax On Dividend Income Over RM100,000 Starting 2025

Anwar said consideration will be given to exempting tax on dividend income from government savings such as Employees' Provident Fund (EPF).

Cover image via Parlimen Malaysia (YouTube)

Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.

Prime Minister Datuk Seri Anwar Ibrahim announced that the government will be introducing a 2% tax on dividend income exceeding RM100,000 received by individual shareholders beginning the 2025 assessment year

During the tabling of Budget 2025 today, 18 October, Anwar, who is also the Finance Minister, said the government plans to progressively expand its tax base with this new income tax.

He said this initiative is being implemented so that income tax collected does not solely depend on contributions from salary recipients, but also includes contributions from company owners and individuals with shareholdings worth millions of ringgit.

He added that consideration will be given to exempting tax on dividend income from government savings such as Employees' Provident Fund (EPF), unit trusts under Permodalan Nasional Berhad (PNB), and dividend income from abroad.

Stay tuned for our overview story of #Budget2025!

Image via SAYS

Read more #Budget2025 stories on SAYS:

You may be interested in: