KUALA LUMPUR: The government plans to gradually expand the tax base by introducing a 2 per cent tax on dividend income exceeding RM100,000 for individual shareholders, beginning in the 2025 assessment year.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, announced this while presenting the 2025 Budget (Belanjawan 2025) in Parliament today.
Anwar said this initiative aims to diversify income tax sources, ensuring that revenue is not solely reliant on contributions from wage earners, but also includes earnings from company owners and individuals with substantial shareholdings.