non-resident individual income tax - Lembaga Hasil Dalam Negeri

B. Computation of regrossed dividend and tax deemed deducted
If the rate of tax deducted as per dividend voucher/certificate differs from the current year’s tax rate for
corporations, please use the following formula to regross the net dividend received and compute the tax
deemed deducted:-
(i) Dividend regrossed (X)
1
= Net dividend x ( 1 - Z * )
=
Net dividend
( 1 - Z * )
= (X)
Enter the amount of regrossed dividend in column ‘X’ under ‘Gross Dividend’.
(ii)
Tax deemed deducted (Y)
= X
= (Y)
* Where Z is the current year’s tax rate for corporations.
C. Computation of statutory income from dividends
(i) Gross dividend (X)
Less:
(ii) Interest on loan employed in the
production of gross dividend income
(iii) Statutory Income
D. Tax deduction under section 51 of Finance Act 2007
(dividends) (as per amount Y above)
Example of dividend regrossed:
Details of dividend voucher:
x
Z *
VOUCHER NO. DIVIDEND NO. TYPE OF DIVIDEND FOR YEAR ENDED
FOR SHARES
REGISTERED ON
DATE OF PAYMENT
12345 67 FOURTH INTERIM 30 JUNE 2009 23 MARCH 2009 4 MAY 2009
SHAREHOLDING
GROSS
DIVIDEND RATE
INCOME
TAX RATE
GROSS DIVIDEND
(RM)
INCOME TAX
(RM)
NET DIVIDEND
(RM)
5000 16%
26%
800.00 208.00 592.00
Year ended - 30/06/2009
Date of payment of dividend - 04/05/2009
Basis period of company which paid the dividend - 01/07/2008 - 30/06/2009
The date of payment of dividend ie. 04/05/2009 falls within the basis period 01/07/2008 - 30/06/2009 which is
year of assessment 2009 whereby the tax rate for corporations is 25%. As the tax deducted from the dividend
is at the rate of 26%, therefore the dividend has to be regrossed using the rate of 25%.
Computation of regrossed dividend and tax deemed deducted:
(i)
Dividend regrossed (X)
= 592 x
=
592
0.75
1
( 1 - 0.25 )
= 789.33 * * Amount to be entered in the return form as Statutory Income from Dividends
is RM789 (takes ringgit into account only)
(ii) Tax deemed deducted (Y)
= 789.33 x 25%
= 197.33
Working Sheet page - 39