I read some of the threads here still saying it will be taxed but some say that it will not be taxed. Please help me clear my confusion.
Thanks.
Is dividend still being taxed?, Very confused!!!
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Nov 3 2009, 05:16 PM, updated 17y ago
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#1
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198 posts Joined: Mar 2009 |
I am still confused with the taxation of dividend? In Bursa, is dividend still being taxed or no more tax?
I read some of the threads here still saying it will be taxed but some say that it will not be taxed. Please help me clear my confusion. Thanks. |
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Nov 3 2009, 07:09 PM
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#2
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QUOTE(rosdi1 @ Nov 3 2009, 06:00 PM) I think it is normal to be confused in this issue because it is confusing. Hi,There are two type of dividend that can be given 1. Tax Exempt.. Where a company had tax exempt allowance given by the law on certain investment. and the board of directors can decide to pay the share holders tax exempt dividend using this allowance. This is considered non taxable income for the recipient (still need to be declared to the income tax) 2. Normal dividend paid from profit or reserve. This is a taxable income yo the recipient. Before 2009 all non tax exempt divided had to be pre-deducted 26% and the monies delivered to the IRD by law. and share holder will have to include the dividend in the tax return 2009 pre-deducting the tax is just optional to the companies and the rate is just 25%. So the company can opt to deduct or not to. but anyway the shareholders have to submit the return as usual. From my experience IRD refunded the overpaid taxes very prompt ..like 1 week after submission. I am still a student. So, I do not have income. So, how can I claim the taxed money? What is IRD? As a shareholder, do I need to submit my dividend earned from stock in tax filling? |
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Nov 3 2009, 08:52 PM
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#3
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QUOTE(rosdi1 @ Nov 3 2009, 08:05 PM) The dividend is an income , so by law you have to file in your income tax return ( you can do it online). May I know what is the minimum amount of money so that the dividend income will be taxed? You did mention 25k, is RM25k is the minimum?If your income from the dividend had not reached the taxable amount ( say 25K or so), you will not be taxed and your monies will be returned in full. ( If you parent had included you as his dependent in their return than that dividend had to be filed in in their return and if there is any refund it will be refunded to them) |
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Nov 3 2009, 09:46 PM
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#4
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QUOTE(rosdi1 @ Nov 3 2009, 09:39 PM) If you are unmarried ,working usually you will only be taxed if your salary is more than RM2K per month Thanks. I should post this in another thread. If you are a student it can be more since you can deduct the student fee out. but to know exactly than you have to fill in the tax return form. This numbers are just guideline. I think not fair to discuss this issue here. |
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