Dvivdend tax is no only applicable to listed company, but also apply to many small companies which often director of these companies often capitalise on Malaysia Unpropotional tax rate on personal income tax rate 30%, company tax rate 25% and SME tax rate 15%.
Take for example, big listed company director control substantial company stake will intentionally reduce personal wage to avoid paying personal tax 30%. Director in turn will retain company profit for corporate tax rate at 25% or 15% tax in case on SME. These director remuneration will then compensated through high company dividend which director entitle the most and as dividend income is single tier tax at corporate level, therefore all high dividend received by director is TAX FREE. Hence, gov realize these loophole enjoy by these high ent worth director, it need to start tax these high net worth director.
In additional, many big listed company or even SME have many small subsidiary or associate companies under group and many of these director also hold directorship of these small subsidiary or associate which often is most profitable companies under entire group. These inter companies under group if dividend once declare is wholly enjoy by director as group expense before accounted in group financial report
PMX gives exemptions to EPF, ASB, PNB etc. What does that tell you except it is a "votes buying" policy? He want to show he is against one group and siding with the other group, which is not supporting him now.
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Posted by MG9231 > 2024-10-19 11:58 | Report Abuse
why amanah saham dividend is exempted?