PETALING JAYA, October 18 – Prime Minister Anwar Ibrahim has announced the introduction of a 2% tax on annual dividend income exceeding RM100,000 for individual shareholders, effective from the 2025 assessment year. This move is part of the government’s effort to diversify its revenue streams beyond salaried workers and target wealthier individuals benefiting from capital income.
Anwar explained that this new tax measure will help expand the Inland Revenue Department’s (LHDN) tax base, bringing more equity to the system by including those earning substantial dividend incomes. However, dividends from the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), unit trusts, and foreign sources will be exempt from the new tax.
This proposal is expected to impact high-income investors, while protecting ordinary Malaysians who rely on dividends from retirement savings and unit trust investments.
