2025 Budget: 2pct tax on dividend income over RM100,000

The government will expand its tax base by introducing a 2% tax on dividend income exceeding RM100,000 for individual shareholders, starting from the 2025 assessment year.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, unveiled this measure during the presentation of Budget 2025 in Parliament today.

2pct tax

This move is designed to diversify Malaysia’s income tax sources, reducing reliance on wage earners and extending taxation to include company owners and individuals with significant shareholdings. The tax is part of the government’s broader strategy to balance revenue generation and promote fiscal sustainability.

BIZ NEWS CODE

Read More News on Business News Malaysia