Friday, May 5, 2017

Single Tier Dividend: need to pay tax or not?

As usual, when near the filling tax income for the year, many clients who like to ask this question:

Is Dividend Income receive need to pay tax or not ?

After 2014, almost all the Malaysia listed company pay dividend as "Single Tier Dividend System". Tax paid by the company level at 25% and the dividend received by Malaysian share holders are tax exemption. In other words, share holder is not required to declared dividend income in the tax return.

How about REIT (Real Estate Investment Trust), is dividend Income receive need to pay tax?

For REIT, there is a With Holding Tax of 10% in the hands of share holder. Meaning, tax already paid as 10%, hence, same case, share holder is not required to declared dividend income in tax return for REIT dividend.

To know more about Single Tier Dividend, you can click here.

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