Malaysia has a single-tier tax system for dividends, meaning that dividends are exempt from tax in the hands of shareholders. Companies are not required to deduct tax from dividends paid to shareholders, and no tax credits will be available for offset against the recipient's tax liability.
Foreign-sourced dividend income received in Malaysia by a resident company, resident LLP, or resident individual in relation to a partnership business in Malaysia is also exempt from tax.
How Bestar can Help
Bestar can help Malaysian investors with dividend income in a number of ways:
Tax planning: Bestar can help you to understand the tax implications of your dividend income and develop strategies to minimize your tax liability. This can lead to a significant increase in your after-tax dividend income.
Dividend declaration and payment: Bestar can help you to prepare and file the necessary paperwork to declare and pay dividends to your shareholders. This can save you time and hassle, and ensure that your dividends are paid out correctly and on time.
Financial reporting: Bestar can prepare accurate and timely financial statements for your company, including statements that show your dividend income and expenses. This information can be used to track your dividend income performance and make informed investment decisions.
Auditing: Bestar's partner can audit your company's financial statements to ensure that they are accurate and compliant with Malaysian accounting standards. This can give you peace of mind knowing that your dividend income is being managed in a responsible and transparent manner.
If you are a Malaysian investor with dividend income, consider working with Bestar to help you maximize your returns and minimize your tax liability.
Here are some specific ways that Bestar can help you with your dividend income:
Identify tax-efficient dividend payout strategies: Bestar can help you to identify tax-efficient ways to payout dividends to your shareholders.
Minimize dividend withholding taxes: Bestar can help you to minimize dividend withholding taxes that may be imposed on your dividends by foreign governments. This can be done by using double tax agreements and other tax planning strategies.
Claim tax deductions for dividend expenses: Bestar can help you to identify and claim tax deductions for any expenses that are incurred in connection with your dividend income. This may include expenses such as investment management fees and brokerage commissions.
Prepare accurate and timely dividend tax returns: Bestar can prepare accurate and timely dividend tax returns for your company. This will help you to avoid any penalties or interest charges for late or inaccurate filings.
If you are interested in learning more about how Bestar can help you with your dividend income, contact us for a consultation.