Govt to introduce 2pct dividend tax on individual shareholders

BUDGET 2025 | The government will introduce a dividend tax aimed at income obtained through dividends by individual shareholders.

In delivering his Budget 2025 speech today, Prime Minister Anwar Ibrahim said the tax, set at two percent, will be implemented next year.

The move was to ensure the nation no longer relies on taxes imposed on salary earners alone but expanded to employers and individuals who hold shares worth millions, he explained.

“We plan to expand our tax base progressively by introducing a dividend tax at the rate of two percent at those earning dividends above RM100,000 beginning next year.”

The finance minister, however, added that he would consider an exemption for dividends earned through the Employees Provident Fund, unit trusts’ managed by Permodalan Nasional Berhad and dividends earned from foreign nations.

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