Hello all dividend players,

Have any one of you submitted this year's tax form?

Supposedly the tax rate have been changed from 27% to 26%.
However, if we follow the formula given by LHDN in their NotaPeneranganBE2007 and calculate the new rate...
we will have to pay more taxes now instead of less.

Any experts or anyone, please comment...
Your help is much appreciated

*confused*

I was under the impression that Personal Tax did not change.

Just that if company don't withhold tax you can't claim it back.

Dude, personal tax remains the same.

Just corporate tax being reduced.

If not mistaken, the gov has written off claiming back the dividend tax starting from this year onward. Meaning we will not be allowed to claim back the excess tax from the dividend starting from year 2008 ? Am i right ? Can someone confirm this.
This is how it work out previously, your taxed amount on dividend is 27%, if your personal tax bracket fall on 19%, then you are able to claim back (27-19) 8% of your taxed amount on div. not sure whether it still apply for this year. I hope it still apply.

This post has been edited by smartly: Mar 5 2008, 12:25 PM

This is what I heard too.. Many retirees make noise and big losses, they are depend income from high dividend stocks..WTH, gov cut their pocket money???

Hi Cherroy,

I understand that too.
My point is that adjustments made when calculating part C2 and E10 of the BE form to get our tax rebate.

Refer to the last page of attachment.

In the new calculation, the C2 part is reduced, E10 part is also reduced. However E10 part is more critical as it is the $$$ we already deducted from our dividend cheque.

Or is it my confusion somewhere? Please advice...


Attached File(s)
 NotaPeneranganBE2007.pdf ( 173.42k ) Number of downloads: 51

Yes, starting from 2008, no claim back under single tier system. It is starting 2008, not 2007. This year submitted for income tax purposes one is for 2007.

dividend need to pay tax?

this is company dividends or like asb/asw dividend?

I am little bit confuse what are you trying to say as well. May be should state your case one by one.

Nvm then... although I still think something's weird here, it doesn't affect my tax returns.
Thanks anyway

Yes both the gross and the tax have been reduced. Although for the moment it may seem that you have lost coz amount of repayment have lessened but in actual fact as shareholders you have benefited coz

i) the issueing Co would have more Section 108 credit left to frank future dividens
ii) the lowering of the tax rates to 26% means that the Co have greater cashflow.

Note not all dividend in 2007 are affected but only for those paid in the financial year 2007 of the issueing Co.

Tax 101

Why so confusing.... Just use this taxsaya.com software. I used it and everything else was automatic. No need to think so much...

confused also... dont knwo how to fill .....
there are two portion, one is taxable and non taxable ..... written in the voucher.

i was thinking of not filling my dividend income in my income tax form dont knw can or not....

Is upto your own discretion i believe, there isn't any law saying you can or can't.
Normally, what i did was i omit those with T.E and only submit those with tax.

i thought by law , all income need to be reported..

yeah.. required by law
but if u didnt report, and they didnt find out (pray hard they wont), then u're safe
but if they somehow find out (and they will), be prepared.
donno how much u'll be fine

so can anyone provide me the way of filling? its seems different from the one mentioned above(mutiply this and that)..

just do your normal income declaration (salary, bonus and remuneration). Dividend upto you, as for my case, i ignore all T.E and submit those with tax of 26% bcoz, these are the tax you can claim back if your tax bracket fall lower than that. (e.g your tax falls at 9%, then you can claim back 17% (26 - 9)).