Stay informed about Malaysia’s latest tax and audit exemption changes, ensuring compliance and strategic financial planning.
The Malaysian government has introduced key updates on the 2025 Dividend Tax and new qualifying criteria for audit exemption. These changes aim to enhance tax equity, optimize compliance requirements, and support business growth.
2025 Dividend Tax Overview
A new 2% tax on dividends exceeding RM100,000 will be introduced, impacting individual shareholders. This measure is designed to enhance tax equity and increase national revenue.
Benefits
Impact on Investors
The new tax may influence dividend distribution strategies and investment preferences, particularly for high-income shareholders.
New Qualifying Criteria for Audit Exemption
Starting from January 1, 2025, private companies must meet specific revenue, asset, and employee thresholds to qualify for audit exemption.
Phased Implementation Approach
The audit exemption criteria will be introduced gradually over three years to help businesses transition smoothly while ensuring compliance.
Key Exemptions and Non-Eligibility
Dormant companies may qualify for audit exemption, but subsidiaries of public companies, foreign entities, and exempt private companies that opt out are not eligible.
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