….is now in sync with Singapore’s system.
Under Malaysia’s old two-tier imputation system, profits earned by companies were firstly taxed at corporate rate and subsequently tax at individual level when received as dividend distributed.
Singapore’s old two-tier imputation system while similar but slightly different from our neighbour’s ie. profits earned by companies were firstly taxed at corporate rate. The after-tax dividend received by individuals were then “re-grossed” and subject to the individual’s tax rate.
Now both Singapore and Malaysia will pay out exempt dividend ie. after corporate tax rate, to shareholders.