EPF dividends are tax exempt

PETALING JAYA: Dividends from government-backed retirement and unit trust funds are not subject to the 2% tax on dividend income exceeding RM100,000, says the Inland Revenue Board (LHDN).

The clarification by LHDN is aimed at addressing confusion among some taxpayers over taxable dividends, noting that dividends distributed by the Employees Provident Fund (EPF), Amanah Saham Nasional Bumiputera (ASNB), the Armed Forces Fund Board (LTAT) and unit trust funds are excluded.