Good morning investors! 🌞
Big changes are coming to REIT (Real Estate Investment Trust) taxation in Malaysia, and if you’ve been earning dividends, it’s important to know how this affects you. Here’s the breakdown:
1️⃣ The Old vs. New Tax System
Previously, a flat 10% tax was applied to your REIT dividends. For example, if you earned RM10,000 a year in dividends, RM1,000 would automatically be deducted, leaving you with RM9,000.
Under the new system, your tax depends on your personal income bracket:
- Low-income: 3%–8% → pay RM300–RM800
- High-income: 24%–30% → pay RM2,400–RM3,000
💡 Good news for most small investors: you could pay much less tax than before, meaning more money stays in your pocket!
2️⃣ What About Forex Investors?
Forex investors are still taxed at 30%, regardless of income. So if you’re trading currencies, nothing changes here.
3️⃣ Market Implications
Some analysts were concerned foreign investors might pull out their money, potentially causing REIT prices to drop. But the Finance Ministry says the Malaysian REIT market has matured—growing from RM1 billion to RM57 billion in just 21 years.
The average yield for REITs is still around 5–6%, while government bonds are about 3.5%. So the gap is healthy, and analysts like Maybank IB still view the market positively.
💡 Key takeaway: short-term pain doesn’t mean long-term loss. REITs remain a solid investment if you choose wisely.
4️⃣ Want to Invest Smartly in REITs?
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