Malaysia’s National Budget 2025 signals a pivotal shift in the nation’s economic strategy, aiming to bolster fiscal sustainability while ensuring economic growth. Among its most discussed measures is the introduction of a 2% Dividend Tax for individual shareholders earning over RM100,000 annually.
This tax has significant implications for residents, non-residents, and businesses. While designed to enhance revenue, the tax has also raised questions about its impact on Malaysia’s competitiveness and the global mobility of wealth.
In this blog, we’ll break down the new tax policy, its exemptions, and how VIVOS can help individuals and businesses navigate these changes strategically.
The Dividend Tax, effective from YA 2025, is aimed at individual shareholders with substantial annual dividend incomes. Key features include:
Navigating these changes requires strategic foresight and expert guidance. As a global leader in mobility and corporate services, VIVOS offers tailored solutions to help businesses and individuals manage their financial and immigration strategies effectively:
Malaysia’s National Budget 2025 introduces measures designed to enhance fiscal responsibility while fostering economic growth. However, the new Dividend Tax also presents challenges that require proactive planning.
Whether you’re an investor reevaluating your portfolio or a business leader seeking clarity on tax implications, VIVOS is here to provide the expertise you need. Together, we can turn these changes into opportunities for growth.
Check out this post on: Singapore Budget 2025 Expectations: Empowering Businesses & Foreign Investments
Expert Guidance for Investors and Businesses.
What is the new Dividend Tax introduced in Malaysia’s Budget 2025?
The 2% tax applies to annual dividend income exceeding RM100,000 for individual shareholders.
Are there exemptions to the Dividend Tax?
Yes, dividends from foreign sources, tax-exempt entities, and certain funds are exempt.
How will the Dividend Tax impact foreign investors?
It may encourage portfolio restructuring and raises questions about Malaysia’s competitiveness in attracting investments.
What uncertainties remain regarding the new tax?
Clarifications are needed on exemptions for Pioneer Status companies and Labuan entities.
How can VIVOS help with these changes?
VIVOS offers tailored advisory services for tax planning, business relocation, and investment strategies.
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