The interest received from KDI Save is fully exempted from personal income tax.
In general, an individual resident enjoys tax exemption on interests received from:
(1) Negotiable certificate of deposit [Income Tax (Exemption) (No. 7) Order 2008]
(2) Rediscounting of banker’s acceptance on repurchase agreement or any similar instrument of trade financing which is traded in money market fund [Income Tax (Exemption)(No. 7) Order 2008]
(3) Money deposited in any savings deposit, current deposit, fixed deposit or investment deposit with licensed banks [Income Tax (Exemption) (No. 7)Order 2008]
(4) Debentures or sukuk, other than convertible loan stock, approved or authorized by, or lodged with, the Securities Commission [Para 35, Sch 6 of Income Tax Act 1967]