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 Do we need to pay tax for Dividend?, Please help, I am confused...

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nujikabane
post Jul 16 2009, 10:32 PM

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QUOTE(overthemoon @ Jul 16 2009, 02:43 PM)
Here's another query on dividends, albeit a twisted angle ...

I'm not the most organised person in the world when it comes to documentation. Was putting away some paperwork yesterday and lo and behold ... I found a dividend cheque dated December 2008. Since a cheque validity is usually 6 months, any chance of me recouping my few hundred bucks ????
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Just inform the company registrar about it, they will send you a replacement cheque. However, a fee of RM5 is charged for it.
overthemoon
post Jul 16 2009, 11:28 PM

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Nujikabane, HTT.

Thank you smile.gif .
titep_shin
post Jul 19 2009, 07:01 PM

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QUOTE(htt @ Jul 16 2009, 06:38 AM)
Open your account with IRB and declare the dividend, then you can get back the 25%.
*
thanks HTT!

so glad 2 hear there is a chance 2 claim back
going to open an account when got chance

can claim back little money nia but better than 0 la haha
so sad under new single tier system i cannot claim back anymore after few years time
htt
post Jul 19 2009, 08:32 PM

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QUOTE(titep_shin @ Jul 19 2009, 07:01 PM)
thanks HTT!

so glad 2 hear there is a chance 2 claim back
going to open an account when got chance

can claim back little money nia but better than 0 la haha
so sad under new single tier system i cannot claim back anymore after few years time
*
But if you went there a few years back, chances are...
the officer will tell you no need to be so trouble to claim back the money, so little only... tongue.gif
Don't know they had improved since then or not rclxms.gif
Keep us posted blink.gif
DanielW
post Oct 7 2009, 11:26 PM

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QUOTE(htt @ Jul 19 2009, 08:32 PM)
But if you went there a few years back, chances are...
the officer will tell you no need to be so trouble to claim back the money, so little only... tongue.gif
Don't know they had improved since then or not rclxms.gif
Keep us posted blink.gif
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Even if it's just RM 20, you can eat 5 plates of chicken rice with it.. biggrin.gif

This post has been edited by DanielW: Oct 7 2009, 11:27 PM
D-Tourist
post Nov 7 2009, 12:34 AM

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QUOTE(nujikabane @ Jul 15 2009, 10:27 PM)
You have answered your own doubt smile.gif

Yes, since it is being taxed at source, you do not need to worry about tax anymore.
Just get the dividend and do whatever you like with it.

Anyway, capital gain is never taxable in tax computation.
*
The concept of taxed at source means a certain percentage of tax is collected at the point of payment (in this case dividend) but this does not mean it is final tax.

Generally dividend vouchers will show 3 column being

Gross Dividend - RMxxx
Income Tax at 25%/26% - RMxxx
Net Dividend - RMxxx

If the 2nd column (Income Tax at 25%/26%) shows a figure, and not NIL, then you will need to declare in your FOrm B because the this type of dividend is paid under the old imputation system.Chances is this will benefit you if your income is not the top bracket.

Tax exempt or Single Tier dividend should show a NIL in the INcome Tax column, so no need to declare.


whizzer
post Nov 7 2009, 12:56 AM

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QUOTE(D-Tourist @ Nov 7 2009, 12:34 AM)
The concept of taxed at source means a certain percentage of tax is collected at the point of payment (in this case dividend) but this does not mean it is final tax.

Generally dividend vouchers will show 3 column being

Gross Dividend - RMxxx
Income Tax at 25%/26% - RMxxx
Net Dividend - RMxxx

If the 2nd column (Income Tax at 25%/26%) shows a figure, and not NIL, then you will need to declare in your FOrm B because the this type of dividend is paid under the old imputation system.Chances is this will benefit you if your income is not the top bracket.

Tax exempt or Single Tier dividend should show a NIL in the INcome Tax column, so no need to declare.
*
I thought highest personal tax is 26% & company tax is 25%. So does it mean if I am in the 26% bracket, I would have to pay extra 1% ?
htt
post Nov 7 2009, 09:07 AM

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QUOTE(whizzer @ Nov 7 2009, 12:56 AM)
I thought highest personal tax is 26% & company tax is 25%. So does it mean if I am in the 26% bracket, I would have to pay extra 1% ?
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Yes, you are, theoretically; but in this case a lot of people just simply not declare the dividend at all.
Mikiyo
post Nov 9 2009, 02:40 AM

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QUOTE(htt @ Nov 7 2009, 09:07 AM)
Yes, you are, theoretically; but in this case a lot of people just simply not declare the dividend at all.
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sry for asking this..i've read the earlier posts...so right now, malaysia is using the single tier tax system right? this means that the dividend are taxed 25% from its source..and for students like us who are within the 0 income bracket, we can claim the 25% by simply sending in a letter to the income tax office?


htt
post Nov 9 2009, 06:43 AM

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QUOTE(Mikiyo @ Nov 9 2009, 02:40 AM)
sry for asking this..i've read the earlier posts...so right now, malaysia is using the single tier tax system right? this means that the dividend are taxed 25% from its source..and for students like us who are within the 0 income bracket, we can claim the 25% by simply sending in a letter to the income tax office?
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One-tier means cannot claim back anything (and you won't see the tax paid there, they just stop showing the item), only imputation tax system (old one) can. While Malaysia still in transition period, some company with reserve still can distribute dividend under imputation tax system.
Ya Rerd
post Aug 6 2020, 06:01 PM

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Bumping this topic up.

I received Dividend Tax Vouchers for my dividends received from my shares invested with RT.
It is stated in some vouchers clearly they are tax-exempted or single-tier dividends but there are also a number of vouchers that says only,
- "SECOND INTERIM INCOME DISTRIBUTION OF 1.56 SEN (1.46 SEN - TAXABLE & 0.10 SEN - NON-TAXABLE)" or
- "SPECIAL DIVIDEND OF 0.5 SEN PER ORDINARY SHARE" or
- "INTERIM DIVIDEND OF 1.0 SEN PER SHARE"

in the above examples, am I required to declare the dividend income during my tax submission? Thanks in advance for the advice.

This post has been edited by Ya Rerd: Aug 6 2020, 06:02 PM
Yggdrasil
post Aug 6 2020, 06:25 PM

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QUOTE(Ya Rerd @ Aug 6 2020, 06:01 PM)
Bumping this topic up.

I received Dividend Tax Vouchers for my dividends received from my shares invested with RT.
It is stated in some vouchers clearly they are tax-exempted or single-tier dividends but there are also a number of vouchers that says only,
- "SECOND INTERIM INCOME DISTRIBUTION OF 1.56 SEN (1.46 SEN - TAXABLE & 0.10 SEN - NON-TAXABLE)" or
- "SPECIAL DIVIDEND OF 0.5 SEN PER ORDINARY SHARE" or
- "INTERIM DIVIDEND OF 1.0 SEN PER SHARE"

in the above examples, am I required to declare the dividend income during my tax submission? Thanks in advance for the advice.
*
Malaysia adopts single-tier tax system.
The amount of dividend paid to your bank is the net amount.

"SECOND INTERIM INCOME DISTRIBUTION OF 1.56 SEN (1.46 SEN - TAXABLE & 0.10 SEN - NON-TAXABLE)"

This is a REIT right? REITS own properties overseas and some properties are subjected to WHT.
REITS already settle this tax before paying out to you.

Ya Rerd
post Aug 6 2020, 10:58 PM

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QUOTE(Yggdrasil @ Aug 6 2020, 06:25 PM)
Malaysia adopts single-tier tax system.
The amount of dividend paid to your bank is the net amount.

"SECOND INTERIM INCOME DISTRIBUTION OF 1.56 SEN (1.46 SEN - TAXABLE & 0.10 SEN - NON-TAXABLE)"

This is a REIT right? REITS own properties overseas and some properties are subjected to WHT.
REITS already settle this tax before paying out to you.
*
Yggdrasil Thanks for your explanation.

So if I understand you correctly, the single-tier tax system is enforced at the company level so as shareholders, we need not take any further actions to declare that dividend income with LHDN as the amount is a nett amount after tax. rclxm9.gif

And yes, that's a REIT dividend.

This post has been edited by Ya Rerd: Aug 6 2020, 10:58 PM

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