Tax Exemption on Foreign Dividend Income Received in Malaysia: Requirements and Conditions
Summary: The Malaysian government removed the tax exemption for foreign-sourced income (FSI) received by Malaysian residents on January 1, 2022, except for foreign dividend income received in Malaysia by a resident company, resident LLP and resident individual in relation to a partnership business in Malaysia. However, an additional requirement was announced on December 29, 2022, […]
Changes to Tax Exemption for Foreign-Sourced Dividend Income in Malaysia
Summary: This article discusses the removal of tax exemption for foreign-sourced income received by Malaysian residents, effective January 1, 2022, as well as the new conditions for tax exemption on foreign dividend income received in Malaysia. The article also covers the additional requirement for tax exemption announced by the Malaysian Inland Revenue Board on December […]
New Requirements for Tax Exemption on Foreign Dividend Income in Malaysia
Effective 1 January 2022, the tax exemption for foreign-sourced income (“FSI”) received by Malaysian residents provided for under Para 28 was removed following the Budget 2022 made on 29 October 2021. Hence, Foreign Income received in Malaysia which is eligible for the tax exemptions are as follows: The exemption in paragraph 1.4(a) does not apply […]
