Knight_2008 is right. Capital gain is not taxed in Malaysia, except it falls under the ambit of S4 of income tax law definition of income

So be careful. If you are a regular trader, then your idea of "capital gain don't need to pay tax" may be taxed under income tax (being assess under carrying on a business). If you thought your capital gain is not taxable, and use the profit to buy car buy house, then IRM may be triggered and you may be at risk.

However, although this is the tax law, I personally have not seen anybody around me kena income tax as a result of trading stock. Or maybe they never tell me they kena audit

And since we are in this topic, same applies to flipping properties. If your frequencies is high, you will be assessed under income tax instead of RPGT. I remember there was an announcement 1-2 years ago by IRB saying if a person buy and sell 2 properties per year, and/or at consistently interval then you will be assessed under income tax instead of RPGT

As for 1 tier dividend, an investor cannot say they are not taxed. Because the company has paid the tax. The company only declare the net income. So you only get dividend which is already net of tax

Unlike the imputation system, where shareholder re-gross back and claim franking credit, and being assessed again. The end result is similar as 1 tier system. But 1 tier system is a lot more straight forward and save a lot of administration

This post has been edited by Showtime747: Oct 23 2017, 05:05 PM