#Budget2025: New 2% Income 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).
By May Vin Ang — 18 Oct 2024, 04:46 PM
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.
