KUALA LUMPUR: The government is currently preparing the estimates of the additional revenue that will be collected from introducing the two per cent dividend tax, said Deputy Finance Minister Lim Hui Ying.
She said an announcement would be made as needed once the estimates have been finalised.
“Preparing the estimates will take time as the Ministry of Finance (MoF) needs to collect data on dividend payments from various sources,” she said during the winding up of the Finance Bill 2024 in Dewan Rakyat today.
The government introduced a two per cent dividend tax on individual shareholders with annual dividend income exceeding RM100,000 in Budget 2025.
Lim said the two per cent tax rate is low compared with other countries that tax investment income, such as the 39.35 per cent rate in the United Kingdom.
She said the implementation of the dividend tax will not have a big impact on the share market and will not jeopardise investment transactions in Malaysia.
“Since the announcement (of the tax), there have been no significant reactions in terms of (market) movements or Bursa Malaysia’s performance that suggest a loss of investor interest.
“The tax is not expected to result in a significant relocation of investment funding out of the country,” she added.
The Dewan Rakyat passed the Finance Bill 2024 with a majority voice vote after the third reading which Lim presented.
The Bill, among others, involves the introduction of the dividend tax, improvements to capital gains tax and minimum global tax, as well as reviewing and extending individual tax relief periods.
It also amends the Real Property Gains Tax Act 1976 and the Stamp Act 1949.
