March 4, 2012

UPDATED: How to declare tax for unit trust dividends?

Updates (13/3/2012): Added clarification on tax liabilities on distribution/dividend declared by unit trust funds

For those who have invested in unit trust funds (either using cash or EPF), many of you would have received dividend vouchers/warrants from the trustees of the unit trust funds. These dividend income (both reinvestment & cash out) have to be declared as an income (filed under Dividend field of the Borang BE).

A typical dividend voucher contains information such as:
  • Trustee company name
  • Warrant/voucher number
  • Payment date
  • Year/period ended
  • Taxable income
  • Malaysian tax
  • Single tier dividend (which does not need to declare as income) and etc.
If you are using e-Filing for income tax submission, this is how you can declare tax for the dividends that you received for unit trust investments:

  1. Login to e-Borang.
  2. Click on the column "Pendapatan Berkanun & Jumlah Pendapatan" (Statutory Income & Total Income).
  3. On the Dividend field, click on HK3 button.
  4. Borang HK3
  5. Fill in these columns with the info that you see in your dividend voucher: 
    • Tarikh bayaran: fill in with Payment date of the voucher
    • Bagi tahun berakhir: fill in with Year/Period ended of the voucher
    • No. waran/no. siri: fill in with warrant/voucher number of the voucher
    • Nama syarikat: fill in with trustee company name of the voucher
    • Dividend kasar: fill in with taxable income of the voucher
    • Cukai dipotong: fill in with Malaysian tax of the voucher
    • Kadar cukai: fill in with the 25 (for year 2011 corporate tax rate).
  5. Click Simpan to fill in another line for another dividend voucher.
  6. Click Kembali ke Pendapatan button to return to the previous Pendapatan Berkanun & Jumlah Pendapatan page.

For other columns, the e-Borang system will automatically calculated the figures for Jumlah Tolakan Cukai Section 110 and Jumlah Dikasar Semula.

Disclaimer: This info is based on my personal interpretation/understanding.

22 comments:

deepak said...

TQ for posting this... was cracking my head past few days trying to sort out the vouchers!
Really appreciate it.

jutamind said...

great that you like my article. do drop by once a while for new/updated articles.

thanks again.

meiyi said...

Hello there. .Thanks!!
It's really useful...

jutamind said...

thanks for reading my article. do drop by for latest articles.

Anonymous said...

Hello,

I found this article on the net (www.hasil.gov.my/pdf/pdfam/Familyandbusiness.pdf) which states that for unit trust dividend, form HK 6 should be filled. I am a bit confused now.

Appreciate your comment.

jutamind said...

I'm no tax expert, but i've consulted my tax consultant friend and they mentioned that HK-3 form is to declare the income from unit trust distributions and dividends from shares investment. HK-6 form is to declare OTHER INCOME apart from dividends/distributions, such as royalties.

The details of section 109B of income tax act is listed in page 280 of this document: http://www.scribd.com/doc/491820/Income-Tax-Act-1967

Please consult your tax expert should be any doubts.

John said...

Since my unit Trust investment is through EPF withdrawal, am I eligible to declare this for tax deduction? Appreciate your help here, please write to at arcade.zen@gmail.com

jutamind said...

This is a good question. However, since i didnt invest in unit trust with EPF money, I'm not too sure on the answer for this question.

I supposed since the dividend declared (whether to be paid in cash or units) will go back to EPF fund, my guess is you do not have to declare it as income.

However, i suggest that you consult your unit trust agent for better clarification.

Sirn Loong said...

what if i did reinvestment with my dividends? do i still need to declare tax? Thanks!

jutamind said...

Whether you reinvest your dividend or cash it out, you will still be getting income. You will receive the tax vouchers from the trustees.

Therefore, you need to declare the income from distribution in your income tax filing.

Anonymous said...

Thanks for this info. My UT consultant told me not necessary to declare which I doubt but not sure where to declare.

Thanks again!
Lee

jutamind said...

Hi Lee,

I guess you need to give your UT agent the boot...there are numerous tax related articles out there relating to this topic....

just doing my job to share the info. cheers.

Unknown said...

Hi,

For No. Waran/ No. Siri, my voucher number is DH1100000392493, but there is not enough space in the e-filling's textbox (cannot key in the last number). Anyone have the same problem?

jutamind said...

i will just put it as 392493, but make sure you keep the voucher in a safe place, just in case of audit.

Unknown said...

hi, just sharing. i called up the income tax dept in regard the e-filing unit trust voucher. the officer directed me to fill in "apa apa perolehan atau keuntungan lain" and "tolak cukai seksyen 110 (lain-lain). HK6 form is not available in e-filing yet.

Anonymous said...

correct, income from unit trust should be under "column C6: apa apa perolehan atau keuntungan lain". "column C2: dividend" meant for dividend distributed by company. income from unit trust is not dividend. It is income distributed by trust body, not company. U can claim back the tax credit under "E10: tolakan cukai seksyen 110"

www.ximnet.com.my said...
This comment has been removed by the author.
Anonymous said...

That means I just need to total up the Taxable Amount in all unit trust voucher and fill in the field "apa apa perolehan atau keuntungan lain" ?

Douglas Jok said...

Hi. I am working overseas, and I received my income abroad. I am aware that my income is not taxable. FYI, I never work in Malaysia(Im a Malaysian citizen) as I was hired out of university and work overseas immediately. I have unit trust accounts with HSBC and Maybank, and I wonder if the dividends are taxable for my case? FYI, I never fill up any Malaysian taxation form.I dont even owned an EPF account. Please advise

Anonymous said...

thanks this is very useful. For filling out the HK3 form, how does one determine the year for filing? Do we based on the date of payment or the year ended or entitlement date on the share voucher?

Jutamind said...

Just put in the date stated in your UT dividend voucher

Dixon Leong said...

what if the UT voucher have different date of payment date, entitlement date and year ended

for my case:
payment date - 18/08/2014
entitlement date - 17/08/2014
year ended - 31/08/2015

tried filling the HK3 form with the payment date and year ended, but was given invalid date error

so does this mean i can only claim this UT voucher for next year (2015 assessment)

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