A)From my understanding, 1. company's profit consist of Gross Profit, Net profit before tax and Profit after Tax. Company can only declare Dividend after paying tax. 2. there is a marginal difference of 4% for corporate tax rate (24%) vs individual tax rate (highest 28%) . So those owners of private companies which able to make more than 1.5m net profit after tax will prefer Dividend instead of getting director fees. so the right move for 2025 budget is either raise the corporate tax rate to 28% or lower down the highest bracket rate of individual to 24%. Instead of imposing 2% additional tax of dividend received for more than $100000 ( this create tax the same profit twice), By doing so, it violet the framework of IRD collect tax unfairly. B)To be fare to every rich citizen of Malaysia , why Finance Minster give exemption to ASB shareholders, obviously it shows discrimination to non for doing so.
it is reasonable to pay a dividend tax if above 100k dividend for 100% own private company, because the owner can declare salary for himself. The owner does not want to declare salary for himself, because he does not want to pay personal income tax
@thekingho9314Сағат бұрын
The person did not claim any salary but dividend at the end year but his OR her company already paid tax for the earnings....