ABC co have retained profit of RM1,500,000.00 as at 31 December 2009. The company decided to declare their 1st dividend of RM500,000.00 from retained profit.

1) What is the procedure to declare dividend?
2) Any tax incurred upon declare dividend? Company, shareholders need to pay tax?
3) Since the financial year end on 31 December of the year. This dividend is interim dividend, am I right?

The use of the term "RM" indicates that this question addresses tax issues for some foreign country.

This forum deals exclusively with U.S. tax issues.