ringgitplus2026-05-0610 min read
Do You Need To Pay Tax On Your Investment Returns?
Check out the link for the RInggitPlus + ThinkTx curated Article by Our Tax Professionals.
This article explains the tax rules for various investment returns in Malaysia. Most popular investments, including fixed deposits, EPF, ASNB, and listed Bursa shares, are generally tax-free or taxed at the source for individual investors. Capital Gains Tax does not apply to selling listed shares. However, starting in 2025, a new 2% tax applies to any annual dividend income from Malaysian companies that exceeds RM100,000. Additionally, REIT distributions incur a 10% withholding tax, and frequent cryptocurrency trading may be taxed as business income. Finally, US stock dividends face a 30% US withholding tax but remain exempt from Malaysian tax until 2036.
This article explains the tax rules for various investment returns in Malaysia. Most popular investments, including fixed deposits, EPF, ASNB, and listed Bursa shares, are generally tax-free or taxed at the source for individual investors. Capital Gains Tax does not apply to selling listed shares. However, starting in 2025, a new 2% tax applies to any annual dividend income from Malaysian companies that exceeds RM100,000. Additionally, REIT distributions incur a 10% withholding tax, and frequent cryptocurrency trading may be taxed as business income. Finally, US stock dividends face a 30% US withholding tax but remain exempt from Malaysian tax until 2036.
Curated by Curated by Pugaleshwaran Raja Kumaran, Executive Director, Tax at ThinkTx Consultants Sdn Bhd.