Dividend tax calculator

Malaysia runs a single-tier dividend system: company profits are taxed once at the corporate level and dividends paid out of that profit are exempt in the shareholder's hands (no further withholding for amounts within the allowance). Effective 1 January 2025 (Finance Act 2024, YA2025 onward), individual shareholders (resident and non-resident) additionally pay a 2% dividend tax on Malaysian-sourced dividend income exceeding RM100,000 a year — modelled here as a flat 2% rate applied above a RM100,000 allowance, exactly matching the engine's allowance-then-flatRate mechanic. The statutory formula is actually slightly more involved (Chargeable Dividend Income = Statutory Dividend Income / Aggregate Income x Chargeable Income, i.e. the taxable portion is apportioned against the shareholder's total tax position) but the RM100,000-threshold/2% headline figure this calculator surfaces is the correct, current mechanism for the common single-source-of-dividends case. Dividends from EPF, cooperatives, pioneer-status companies and foreign-sourced dividends are exempt from the 2% tax. Corporate shareholders are not subject to this tax at all.