Are dividends from my Sdn Bhd taxed?
Do not assume dividends from a Sdn Bhd are always tax-free for an individual shareholder. From YA2025, the individual dividend-tax rules include a RM100,000 threshold and a 2% rate on the chargeable income attributable to taxable dividends. The final calculation follows the prescribed rules, rather than an unconditional 2% charge on every cash payment above the threshold.
Sources: HASiL YA2025 BE explanatory notes
Also asked as: dividend tax malaysia; single tier dividend; dividen kena cukai ke; 2 percent dividend tax.
HASiL’s YA2025 BE notes cover resident and non-resident individual shareholders, including shares held through nominees, and cash or non-cash distributions from Malaysian listed and unlisted companies. Have your tax agent check the applicable exemptions and chargeable-income calculation using your dividend vouchers and other income.
Key facts
- Individual dividend-tax rules apply from YA2025
- RM100,000 threshold; 2% on the relevant chargeable income
- Confirm exemptions and the prescribed calculation with your tax agent