By submitting income tax return and declaring your dividend income.

Steps:

1. Regross your dividend income with the company tax rate on the year which the dividend is declared.
Example for the year 2010, Say you received RM 75 2 tier dividend income.

Year 2010= Tax rate for companies = 25 %
Dividend received = RM 75

Regrossing calculation formula = 100/(100 - current year tax rate) *Net dividend received

100/75*75 = RM 100

Include this RM 100 in your dividend income.

Then after you calculate your net income tax payable for the year, deduct the portion of the dividend that has been taxed. As such 100 *25, = RM 25 (this portion where the company has remitted it to the IRB via S 108 dividend franking system. Remember, you only received RM 75 when in actual fact RM 100 dividend is declared)

Claim it as Section 110 set off = RM 25.
Any income tax payable you will less this to bring down your tax payable.
If you do not have any tax payable, this RM 25 will be a refund to you.