Malaysia

Dividend tax

It is proposed that, with effect from year of assessment 2025, annual dividend income exceeding 100,000 Malaysian ringgits (MYR) received by resident individuals, non-resident individuals, and individuals holding shares through nominees is subject to a 2% tax on the chargeable dividend income after eligible tax deductions. This tax applies to dividend income distributed by resident companies.

High value goods tax

A high value goods tax at the rate of 5% to 10% on certain high-value items, such as jewellery and watches, was originally planned to be implemented on 1 May 2024. Its implementation has since been deferred to allow the review of the proposed high value goods tax alongside with the planned expansion of the sales tax and service tax.

Increase in service tax rate from 6% to 8%

Effective from 1 March 2024, the service tax rate has increased from 6% to 8% for all taxable services previously subject to tax at 6%, except for:

• Provision of food and beverage services.
• Telecommunication services.
• Parking services.
• Logistics services.